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Kajsa Kairento
Marcus Nygårds
Export of municipal environmental technology knowledge
An analysis of previous activities and incentives
2014-04-28
LIU-IEI-TEK-A--14/01823—SE
Department of Management and Engineering
Division: Environmental Technology and Management
Export of municipal environmental technology knowledge
An analysis of previous activities and incentives
Kajsa Kairento
Marcus Nygårds
Handledare vid LiU: Wisdom Kanda
Examinator vid LiU: Olof Hjelm
Examensarbete LIU-IEI-TEK-A--14/01823—SE
Institutionen för ekonomisk och industriell utveckling
Industriell Miljöteknik
Abstract
Accelerating urbanisation and greenhouse gas emissions cause some of the world’s important
environmental problems, which leads to an increasing awareness of the importance of
sustainable environmental technology systems. Sweden has had a very strict environmental
legislation since the 1970’s, with Swedish municipalities responsible for local environmental
technology service systems. This has led municipal companies to be very experienced of some
of the functions related to waste management, waste-to-energy and district heating.
Municipal companies often receive international visits where the foreign delegates
sometimes request Swedish municipal knowledge regarding how to design and manage
sustainable systems in their home regions. Therefore, the idea of municipal knowledge export
has been up for discussion. This study aims to analyse the municipal companies’ previous
experiences of knowledge export, which includes looking at what incentives and barriers they
perceive therein. The work also investigates what knowledge municipal companies export
and what approaches they choose, as well as what role they and other actors think municipal
companies should have in order to best benefit Swedish environmental technology export.
The project was designed as a qualitative interview study, where the main data collection was
carried out in semi-structured interviews with decision-makers in municipal energy and
waste companies. Interesting companies were found using desktop research. Data collection
was complemented by a survey where municipal companies were asked about their
involvement in knowledge export.
The results show that municipal companies export knowledge such as consulting and
advisory services, education and project management. They offer knowledge for example
within managing waste systems, operating district heating plants, as well as public awareness
and citizen participation. Some companies have started subsidiaries dedicated specifically to
export ventures, while others offer personnel as sub-consultants to private companies. Most
export took place as projects run by the municipal companies themselves, often financed by
development aid funds.
The most important incentives motivating municipal companies to start or continue their
export endeavours include motivating employees, becoming an attractive employer,
contributing to reducing environmental impact where it is most needed, and external
initiatives or requests. The most prominent barriers were related to lack of resources, cultural
and political differences, and challenges related to marketing.
The municipal companies and other actors in governmental and private organisations appear
to have different perceptions of the significance of municipal knowledge and the role
municipal companies should play, in order to best contribute to Sweden’s environmental
technology export. In general, the interviewed municipal companies tend to seek a more
active role in the export, whereas the other actors would prefer municipal companies to be
more focused on promoting the export from their home region.
Acknowledgements
The authors would like to thank all those who have kindly offered their help and support over
the course of this thesis project.
Gert Kindgren, former CEO of Cleantech Östergötland, first suggested this study and
included us in the research project, and has supported us as well as letting us benefit from his
network of contacts. Arne Sandin has also been supportive and together with Gert offered
resources allowing us to realise data collection by visiting companies in different parts of
Sweden.
We are also thankful for the help and support offered by Wisdom Kanda and Olof Hjelm, who
have guided us along the thesis process and offered their useful opinions. The valuable
contribution of student reviewers Anna Tegenfeldt and Stina Axi is also much appreciated.
Finally, we would like to thank all those who offered their time for interviews.
Table of contents
1 Introduction ......................................................................................................................... 1
1.1 Background ................................................................................................................... 1
1.2 Aim .............................................................................................................................. 2
1.3 Specified research questions ....................................................................................... 2
1.4 Recipients .................................................................................................................... 3
1.5 Limitations .................................................................................................................. 3
1.6 Outline of the report .................................................................................................... 4
2 Problem context .................................................................................................................. 5
2.1 Swedish environmental technology knowledge export ............................................... 5
Market for Swedish environmental technology export ........................................... 5 2.1.1
Government support to environmental technology export ................................. 6 2.1.2
Support organisations promoting environmental technology export ................. 6 2.1.3
2.2 Important definitions .................................................................................................. 6
Environmental technology ................................................................................... 7 2.2.1
Energy and waste technology ............................................................................... 7 2.2.2
Municipal company .............................................................................................. 7 2.2.3
Knowledge export activities ................................................................................. 8 2.2.4
Commercial and non-commercial export ............................................................ 8 2.2.5
3 Theoretical framework ........................................................................................................ 9
3.1 Topics in the theoretical framework ............................................................................ 9
3.2 Important aspects of knowledge export ...................................................................... 9
Characteristics of service sales ........................................................................... 10 3.2.1
Export from state-owned enterprises ................................................................ 10 3.2.2
Knowledge export approaches ............................................................................ 11 3.2.3
Knowledge specifically subject to export ............................................................12 3.2.4
The dynamics between different actors in export ...............................................12 3.2.5
3.3 Incentives for export ................................................................................................... 13
Incentives related to business opportunities ...................................................... 13 3.3.1
Unsolicited orders ...............................................................................................14 3.3.2
Management initiatives .......................................................................................14 3.3.3
Seeking knowledge gains ..................................................................................... 15 3.3.4
3.4 Barriers for export ...................................................................................................... 15
Characteristics in the market and of the customer ............................................. 15 3.4.1
Institutional and ownership-related factors .......................................................16 3.4.2
Barriers related to company resources ...............................................................16 3.4.3
Company characteristics affecting the perception of different barriers ............. 17 3.4.4
3.5 Theory synthesis ......................................................................................................... 17
Knowledge export content and style ................................................................... 17 3.5.1
Incentives ........................................................................................................... 18 3.5.2
Barriers ................................................................................................................19 3.5.3
4 Methodology ..................................................................................................................... 20
4.1 Project phases and research design ........................................................................... 20
4.2 Research approach .....................................................................................................21
Primary and secondary data ...............................................................................21 4.2.1
Qualitative interview study .................................................................................21 4.2.2
4.3 Data collection techniques......................................................................................... 22
Desktop research on municipal energy and waste companies........................... 22 4.3.1
Survey ................................................................................................................. 24 4.3.2
Interviews with municipal companies ............................................................... 24 4.3.3
Additional interviews with other actors ............................................................. 25 4.3.4
Certain special cases of data collection .............................................................. 27 4.3.5
4.4 Discussion of methodology choices ........................................................................... 27
4.5 Method for data processing and analysis .................................................................. 28
Analysis of what is exported and how ................................................................ 28 4.5.1
Processing results and analysis of incentives and barriers ................................ 29 4.5.2
Analysing the importance of municipal companies in export ........................... 29 4.5.3
5 Results ................................................................................................................................ 31
5.1 Companies included in the study ............................................................................... 31
5.2 Knowledge export projects and attempts .................................................................. 32
Dedicated subsidiaries to explore export business opportunities ..................... 33 5.2.1
Independent projects run by the municipal company ....................................... 35 5.2.2
Sub-contracting to consultants and suchlike ..................................................... 37 5.2.3
Other activities ................................................................................................... 38 5.2.4
Knowledge offered in municipal export activities .............................................. 38 5.2.5
5.3 Experienced incentives .............................................................................................. 40
Why municipal companies want to participate in knowledge export ................ 40 5.3.1
Perceived gains from knowledge export ............................................................ 43 5.3.2
5.4 Experienced barriers ................................................................................................. 45
Challenges with knowledge export ..................................................................... 46 5.4.1
Reasons the companies refrain from knowledge export .................................... 49 5.4.2
5.5 The importance of municipal companies in Swedish environmental technology export 51
Significance of municipal knowledge as perceived by municipal companies ..... 51 5.5.1
The significance of municipal knowledge to other actors .................................. 53 5.5.2
The role municipal companies want to take ...................................................... 54 5.5.3
Other actors’ perception of municipal companies’ role ..................................... 55 5.5.4
6 Analysis and discussion .................................................................................................... 57
6.1 The how and what of knowledge export .................................................................... 57
Approaches for knowledge export ......................................................................... 57 6.1.1
Content in knowledge export ............................................................................. 59 6.1.2
6.2 Incentives for export .................................................................................................. 60
Incentives related to organisation .......................................................................61 6.2.1
Desire to make an environmental contribution ..................................................61 6.2.2
Business-related incentives ................................................................................ 62 6.2.3
Reactive approach to export ............................................................................... 63 6.2.4
Comparison between expectations and realised gains ...................................... 63 6.2.5
6.3 Barriers for export ..................................................................................................... 64
Barriers related to company resources .............................................................. 65 6.3.1
Customer- and market-related barriers ............................................................. 66 6.3.2
Institutional and administrative barriers .......................................................... 66 6.3.3
6.4 The importance of municipal knowledge .................................................................. 67
Significance of municipal knowledge ................................................................. 67 6.4.1
Different export roles for municipal companies ................................................ 68 6.4.2
6.5 Discussion of approaches in relation to incentives and barriers .............................. 70
7 General discussion ............................................................................................................. 71
7.1 The validity and generalizability of the results........................................................... 71
7.2 Municipal knowledge export in the larger context .................................................... 72
8 Conclusions ....................................................................................................................... 75
8.1 Conclusions of the study ............................................................................................ 75
The knowledge offered and the models used ......................................................... 75 8.1.1
Reasons to participate in knowledge export ...................................................... 75 8.1.2
Realised gains from knowledge export .............................................................. 76 8.1.3
Perceived challenges in knowledge export ......................................................... 76 8.1.4
Reasons to refrain from commercial knowledge export .................................... 76 8.1.5
The importance of municipal companies for the success of Swedish 8.1.6environmental technology export ..................................................................................... 76
8.2 Further research ........................................................................................................ 77
9 References ......................................................................................................................... 78
9.1 Written sources.......................................................................................................... 78
9.2 Interviews .................................................................................................................. 81
10 Appendices ........................................................................................................................ 83
Appendix 1: Questionnaire ................................................................................................... 83
Appendix 2: Interview guide for municipal companies ....................................................... 83
Appendix 3: Additional interviews ....................................................................................... 85
Appendix 4: Results from desktop research ......................................................................... 86
Appendix 5: Export cases not studied in depth .................................................................... 88
Table of figures
Figure 1: Report outline ............................................................................................................. 4
Figure 2: Export incentives ....................................................................................................... 13
Figure 3: Export barriers ........................................................................................................... 15
Figure 5: Framework for the overall methodology of the project ............................................ 20
Figure 6: How to analyse results .............................................................................................. 29
Figure 7: Analysing significance and role of municipal companies ......................................... 30
Figure 8: Representation of the number of companies covered by the different data collection
techniques ................................................................................................................................. 31
Figure 9: Structure of section 5.3 ............................................................................................. 40
Figure 10: Structure of section 5.4 ........................................................................................... 46
Figure 11: Structure of the analysis .......................................................................................... 57
Figure 12: Lifecycles of the identified dedicated subsidiaries .................................................. 58
Figure 13: Structure of the analysis of incentives .................................................................... 60
Figure 14: Comparison of incentives expressed as expectations and realised gains ............... 64
Figure 15: Structure of the analysis of barriers ........................................................................ 65
Figure 16: Representation of companies' opinion on personnel resources in export in relation
to company size ........................................................................................................................ 65
Figure 17: Comparison of the respondents’ opinions regarding municipal companies' role .. 69
Figure 18: Driving forces for export on national and municipal level ..................................... 73
Table of tables
Table 1: Key themes of export incentives ................................................................................. 18
Table 2: Key themes of export barriers ....................................................................................19
Table 3: Data collection activities ............................................................................................ 22
Table 4: Presentation of other interviewed organisations ....................................................... 26
Table 5: Strengths and weaknesses of data collection methods .............................................. 27
Table 6: Keywords used to process results............................................................................... 28
Table 7: Summary of companies and activities ........................................................................ 33
Table 8: A summary of knowledge export content .................................................................. 39
Table 9: Reasons to participate in knowledge export ...............................................................41
Table 10: Gains from participating in knowledge export ......................................................... 44
Table 11: Challenges in knowledge export................................................................................ 46
Table 12: Reasons to refrain from knowledge export or commercial knowledge export ......... 50
Table 13: The significance and role of municipal companies in export .................................... 51
Table 14: Names, organizations and titles of all other interviewed actors .............................. 53
1
1 Introduction
This first chapter contains a brief description of the background of this project, followed by
the aim and research questions of the study. The main recipients are also presented and the
limitations of the study are defined. Finally, the outline of the report is presented.
1.1 Background
Many developments in the world cause an increased need for investments in technologies
that promote resource-efficiency and reduce environmental impact. Urbanisation is one
example of such a development and among the challenges that come with accelerating
urbanisation are resource constraints such as scarcity of materials, oil supply, waste
management, water supplies, food security, and problems related to transportation activities
(UNEP, 2012a).
Generation and treatment of waste become important areas to improve as urbanisation
continues. Accelerated generation of municipal solid waste generates the need to replace
traditional landfilling with other waste management technologies (UNEP, 2011).
The Swedish environmental technology sector receives a lot of international attention, and
many regional and national environmental technology organisations experience a high
demand for visits by foreign ambassadors and policy-makers who want to know more about
Swedish solutions. Reference cases such as waste incineration or sorting facilities and district
heating production plants are typical destinations for such visits. (Swentec, 2008)
Because Swedish municipalities have had a monopolistic role as service providers in various
environmental technology sectors, they have over decades developed and refined their
knowledge as tenders and system managers (Fredriksson and Mattson, 1996). Therefore,
municipal companies possess knowledge about system solutions that is attractive on the
export market (Eriksson and Nilsson, 2013). Especially, waste management and waste-to-
energy solutions have been identified as having very good market potential for knowledge
export (Swedish Government, 2011).
Even though municipal companies have the right knowledge and there are ways for market
actors to include it in their offers to foreign customers, Sweden’s environmental technology
export business is not reaching its full potential. While there have been many projects,
investments and initiatives to promote export business growth in the environmental
technology sector, it is unknown to what extent they have been successful. Mostly focused on
building platforms and networks, it has failed in creating significant business opportunities
(Eriksson and Nilsson, 2013).
Some municipally owned energy and waste companies have initiated international projects
on their own as business ventures, some do so within bilateral agreements and others regard
it as illegal with current legislation. There are also private consultancy firms who use
knowledge resources from municipal companies in international projects on a contractual
2
basis. All in all, there is little documented knowledge of what experiences municipal
companies have of knowledge export and what incentives or barriers they perceive regarding
export ventures. Eriksson and Nilsson (2013) studied a few cases of consultancy companies
and export promoting organisations that work in different ways to make use of municipal
companies’ knowledge of environmental technology in their business ventures, but it has not
been concluded what importance the municipal knowledge resources actually have. No
objective analyses have been made on the subject, especially from the point of view of
municipal energy and waste companies.
There are discussions regarding the importance of municipal companies in the Swedish
environmental technology export, but different actors have very different views on the matter.
Since the municipal companies possess a substantial amount of valuable resources such as
operational experience, buyer’s expertise, reference plants, knowledge about financing, and
citizen communication, they could potentially make valuable contributions to the export
sector. It is necessary to find a common ground from which to develop the export.
1.2 Aim
The aim of this thesis project is to analyse municipal energy and waste companies’ incentives
to engage in, and their experiences of, knowledge export. This will serve to provide business
intelligence regarding the issue of international engagements in these companies.
1.3 Specified research questions
In order to analyse the municipal knowledge export, it is necessary to look at the content of
the export offer and the business models with which export is carried out. Studying what it is
that the companies have provided in international projects, makes it possible to discuss the
role of the municipal companies in the national structure for environmental technology
export. Therefore, one of the research questions for this study is:
- What knowledge are municipal companies offering for export, and how do they
go about it?
Understanding the nature of municipal knowledge export requires investigating the driving
forces which motivate the companies to engage in international activities. For any discussion
of business structures through which municipal knowledge resources can be offered to the
export market, the will of municipal companies to participate therein is a key element. The
motivation to participate in any form of knowledge export can be looked at in terms of
incentives - the collection of encouragement, reasons, rewards or perceived benefits that
influence the companies’ decisions. Incentives for knowledge export on commercial grounds,
where the objective is to make a profit, could differ or concur with incentives for non-
commercial knowledge export. A definition of commercial export will follow later in this
report. In this project, the study of incentives is directed by the following research questions:
- Why do municipal companies want to participate in knowledge export?
- What do municipal companies gain from participating in knowledge export?
3
Just as influential upon the realisation of municipal knowledge export as the incentives, are
the barriers within and around the municipal companies that may hinder them in a variety of
ways. It is essential to study the knowledge export barriers that exist for municipal companies
in order to achieve a proper analysis. Especially interesting from the point of view of the
business potential within this area, is the aspect of what barriers hinder commercial
knowledge export from municipal companies. The analysis of barriers is approached using
the following research questions:
- What do municipal companies perceive as challenging about knowledge export?
- Why do municipal companies refrain from commercial knowledge export?
Swedish environmental technology export is made up of numerous different actors, from the
knowledge resources within Swedish systems to the foreign customers. Market actors,
enabling organisations, business and engineering consultancies as well as municipal
companies make up a complex network. An analysis of knowledge export in municipal
companies requires taking into account the importance of municipal companies, which
includes both what significance their knowledge has, and what role they can and should have.
The issue can be approached by gathering and comparing the standpoints of actors with
interest in or influence on Swedish environmental technology export. The following question
is used in the analysis:
- What is the importance of municipal companies for the success of Swedish
environmental technology export, according to municipal companies and other
actors?
1.4 Recipients
The intended audience for this report is made up of decision-makers in and around
municipally owned energy and waste companies. The results are thought to be useful for
stakeholders that try to commercialise municipal knowledge, or in other ways make it
available for international markets.
1.5 Limitations
This study intends to look at knowledge export activities within municipally owned waste and
energy companies. The companies in question are especially those with operations in the
field of district heating, waste-to-energy and waste management systems. Companies focused
entirely on energy sales and distribution or power production from non-renewable sources
are not considered relevant since this thesis project is meant to contribute to the
environmental technology export sector, especially within waste-to-energy areas.
All energy and waste companies owned by one or more of Sweden’s 290 municipalities was
not subject to study in this project, due to limited time and resources. It can be argued that in
order to provide relevant results and fulfil the aim of the project, it is necessary to identify
export activities that has existed, but not essential to find all the relevant activities.
4
While the study aims to look at energy and waste companies, it must be noted that the
majority of the results originate from the study of waste management companies. There are
several reasons for this: it is within the waste sector that the main current export initiatives
exist, through the export network run by the the Swedish Waste Management and Recycling
Association (Avfall Sverige). The energy sector is more dominated by large non-municipal
energy companies, from which follows that the municipal knowledge within energy could be
thought of as less unique than within waste.
1.6 Outline of the report
This report consists of eight chapters. An illustration of the report outline can be seen in
Figure 1.
Figure 1: Report outline
Chapter 1 is the introduction of the report, where the background, aim, and research
questions of the study are specified. In chapter 2, the reader is familiarised with some of the
important themes and concepts of the subject matter, which is thought to allow a better
understanding of the study and its results. The theoretical framework used in the study is
elaborated in chapter 3, where a selection of previous research and relevant topics of
knowledge is summarised.
In chapter 4, the methodology of the study is presented. Both the overall research design and
detailed data collection methods are described and discussed. Chapter 5 contains the
empirical results of the study, and is the most comprehensive part of this report. In chapter 6,
results are discussed and analysed by comparing the findings to the theoretical framework. In
chapter 7, the authors provide a more general discussion of the study and its results. Chapter
8 presents the conclusions of the study, answering the research questions that were
introduced in chapter 1.
5
2 Problem context
In this chapter, some important background information and definitions of certain concepts
are given. This will serve to facilitate the understanding of the rest of the report, by offering
the reader a better understanding of the context of the project.
2.1 Swedish environmental technology knowledge export
Sweden is highly dependent on its export. However, the nation has seen a decline in its share
in global trade since 2000, whilst strengthening its position within the global trade in
services (BCG, 2013). In a recent study, Boston Consulting Group (2013) concludes that in
order for Sweden to keep a continued prosperity, Swedish companies must be able to
compete on an international market. The Ministry of Foreign Affairs (2010) declares that it is
essential for Sweden to expand the export base, both by encouraging more companies to
export, and by exporting to more markets. There are a number of programmes and
organisations that have been put in place in order to promote and develop the Swedish
environmental technology export sector.
Market for Swedish environmental technology export 2.1.1
The business opportunity in export of environmental technology is not solely dependent on
the adaption of projects and products to the customer’s needs. Other important factors are
whether or not there is any interest from the market, and if actors on the market are ready to
invest. It has been noted that aid work and twin-city projects can have catalytic effects on
market development both by establishing institutions and regulations, and also by creating
the interest needed to make business happen (Swedish Government, 2011).
The Swedish Government (2011) ordered an analysis which concluded that the following
technological areas should be prioritised for export activities, based on market maturity,
regulations, ease of implementation, etc.:
Sustainable city planning
Transportation
Energy
Water
Waste management
These five areas, combined with environmental consultants, accounted for about 94 % of
Sweden’s total export within environmental technology in 2007 (Confederation of Swedish
Enterprise, 2009).
More often than not, the buyer of environmental technology projects is a government or
other policy-maker, who is typically interested in building for example a waste management
and treatment system, a water purification system, or a complete city from the ground up.
For these customers it is not only the technical solutions that are of interest, but getting
citizens on board and educating them are also key parts of a system that can even be sold
separately (Swedish Government, 2011). Swedish municipal companies have a long
6
experience of this from their work in the municipalities, and thus there is a potential for
knowledge export. (Eriksson and Nilsson, 2013; Fredriksson and Mattson, 1996)
Government support to environmental technology export 2.1.2
In 2011, The Swedish Government presented a plan for the development and export of
Swedish environmental technology in 2011-2014, where one of the aims is to ―promote export
of Swedish environmental technology and thereby contribute to sustainable economic growth
in Sweden and globally‖ (Swedish Government, 2011). The importance of a demand-driven
approach is accentuated and a number of actions and projects have been planned. After a
review in late 2012, some criticism was raised about the fact that a vast majority of the
actions were focused on the supply-side and only one action was labelled as intended to raise
interest and create demand (Growth Analysis, 2012). However, there are some projects which
have a clear international focus and the possibility to create and capture demand. Examples
of such projects include the International Environmental Technology Cooperation (IMT),
who promote Swedish environmental technology in China primarily, and SymbioCity which
is a marketing platform. SymbioCity is a tool to market Swedish environmental technology
and a way of communicating Swedish experiences (Swedish Government, 2011; Ministry for
Foreign Affairs, 2014).
Support organisations promoting environmental technology export 2.1.3
There are a number of organisations that promote Swedish environmental technology export,
with an aspiration to support and simplify business activities and export for environmental
technology companies. They often promote cooperation and create business arenas where
buyers and suppliers can meet. The analysis was made that while there is a large number of
supportive programmes and structures, their multitude and similarities made it difficult for
companies to know what help they could get from where (Swentec, 2009a).
The Swedish Waste Management and Recycling association (Avfall Sverige) is a trade
organisation made up of just below 400 member companies from both the public and private
waste management and recycling sectors. Activities include spreading information,
promoting technological development, networking, and development projects (Avfall Sverige,
2014a). They run a project which aims to promote the export of Swedish waste management
products and competence. The project is an attempt to make a powerful national effort to
increase the Swedish waste export sector. As part of the project, they run a support network
for member companies interested in entering the export market (Avfall Sverige, 2014b).
2.2 Important definitions
Here follows a presentation of a few of the important terms and concepts that are central in
this thesis. Environmental technology, energy and waste, municipal companies, knowledge
export, and commercial versus non-commercial knowledge export will have to be defined in
order for the thesis to be understandable.
7
Environmental technology 2.2.1
There are several definitions of environmental technology provided from different authors
and organisations. The one used in this report is the same as the one presented by the
Swedish Ministry of the Environment (2005): ―goods, systems, processes and services that
offer clear environmental advantages in relation to existing or alternative solutions, seen
from an eco-cycle perspective‖ (Ministry of the Environment, 2005). The European
Environment Agency (EEA) (2012) defines such environmental advantages as: ―solutions to
decrease material inputs, reduce energy consumption and emissions, recover valuable by-
products and minimise waste disposal problems‖ (EEA, 2012).
Energy and waste technology 2.2.2
The technology fields in focus for this report are waste management, as well as waste-to-
energy solutions and district heating production.
Waste management means the collection, transport, treatment, and destruction of solid
waste from households or industries within a municipality. Typical operations of a municipal
waste company include, among others: collecting household waste at citizens’ homes, hosting
facilities for collecting recyclable material, managing landfills, and making combustible waste
available for energy recovery by combustion. Waste management activities within the
municipal area of responsibility also include communication and educational activities, since
the success of waste collection systems depend so strongly upon citizens’ behaviour.
The waste-to-energy concept includes all treatment processes and technologies used to
generate useable energy (for example electricity, heat or fuel for transportation) from solid
waste (Department for Environment, Food & Rural Affairs, 2013). When solid waste is
combusted, the resulting heat is used to propel a turbine that generates electric power.
Around one third of the energy from combustion can be transformed into electricity, and the
rest of the energy is absorbed as heat by warming water. The heat can then be distributed to
local households through a district-heating network, or directly to plants that need the heat
supply for industrial processes.
Organic materials sorted out from household waste can be processed in a biogas plant
resulting in methane, which is useful for electricity production or upgrading for vehicle fuel.
Municipal company 2.2.3
A municipal company is, in this thesis, defined as a company owned partly or completely by
one or several Swedish municipalities. In this report, the term municipal energy and waste
companies refers to those municipal companies that supply services within waste
management and waste-to-energy domains (as described previously).
Certain municipalities have chosen to organise the waste management and energy production
operations as part of the municipal administrations just like social offices, parks and
recreations, schools, and so forth. Other cities have formed corporations for a few or all the
services related to technical city services including waste management and energy
production. In some cases, several cities co-own such energy and waste companies.
8
The concept of municipalities in Sweden originated in 1862, and the principle for municipal
self-governance was included in the Swedish constitution in 1974 (SKL, 2013a). A
municipality is obligated to follow the rules and regulations that the government decides
upon, but also has the right to make independent decisions and levy taxes from the
inhabitants. A municipal assembly is chosen in an election by the citizens every four years,
and the council then appoints the executive committee who is responsible for the finances of
the municipality, as well as coordinating all the work conducted within the municipality.
There are a number of required commitments for a municipality, for example social services,
eldercare, educational system, public transport, water and wastewater systems, sanitation,
waste management, and several others. Apart from those, each municipality may also chose
to take part in other commitments such as building homes, culture and energy (SKL, 2013b).
Municipalities obey the municipalities’ law (Kommunallagen) which regulates their existing
rights and duties. It states that the main objectives for municipalities and their companies lie
within their geographical area and the interests of the citizens (SFS 1991:900). In February
2009, an amendment was made to the legislation, which gives municipalities the authority to
conduct certain activities apart from those that are prescribed in the municipalities’ law. The
amendment contains a requirement that all operations must be conducted on a commercial
basis, which allows (and forces) the businesses to be profitable. (SFS 2009:47)
One part of the addition concerns the export of services. More specifically it focuses on
knowledge and experiences within the current municipal services, and it is therefore not
allowed for them to conduct export within any other field. It is highlighted that the municipal
risk-taking (product, commercial, political, financial and currency risk) must always be low
and the business has to be secured by some guarantee or insurance. (SFS 2009:47)
Knowledge export activities 2.2.4
In this report, the term ―knowledge export‖ is given a wide definition, including a number of
potential activities, projects and collaborations where a municipal company contributes to a
result related to waste, energy, or environmental technology in another country. Knowledge
export is any situation where knowledge, expertise or competence is transferred from the
Swedish municipal company to a foreign receiver through for example instructions, training,
reports, workshops, presentations, advice, and project management roles.
Commercial and non-commercial export 2.2.5
Knowledge export from municipal companies exists in many different forms and can be
conducted using different business models. In order to answer the research questions in this
thesis it is important to be able to distinguish what can be called commercial export from
non-commercial export. Since the thesis is primarily aimed at municipal companies it is also
natural that the definition of commercial export is made from their point of view. That being
said, the definition of commercial export is all international projects where the company aims
to make a profit in the project, not only to cover their costs. The non-commercial projects are
typically funded by SIDA (Swedish International Development Cooperation Agency) or ICLD
(International Cooperation for Local Democracy).
9
3 Theoretical framework
A theoretical framework, aimed at forming a basis for the analysis to follow, is developed in
this chapter. There is a section explaining the most important characteristics of service
export and the barriers and incentives typically experienced by exporting companies. In the
end of this chapter there is a section synthesising the presented theories in relation to the
special circumstances of municipal companies, elaborated in section 2.2.3.
3.1 Topics in the theoretical framework
The theoretical framework of a research study seeks to support the interpretation,
understanding, and analysis of empirical results (Björklund and Paulsson, 2012). The subject
of this study, knowledge export in municipal companies, has not been covered to any extent
in previously published research. Therefore, the theoretical framework contains a selection of
previous research and available knowledge about areas that do not necessarily originate
directly from the study of municipal companies, but still is applicable.
In the first part of the theoretical framework, some topics of knowledge export are discussed.
The characteristics of service sales are important to address because knowledge is exported in
the form of services, such as consultancy. Previous research on export from state-owned
enterprises is also included. State-owned enterprises, and the municipal companies included
in this study, have some common characteristics in that they are both owned by public actors.
Including experiences from state-owned enterprises in the theoretical framework can
therefore enrich the interpretation of the empirical results of this study. The common
approaches and content in municipal knowledge export are also mentioned, as they can be
compared to the result and thus contribute to the analysis.
A large number of previous studies have considered small and medium-sized manufacturing
companies, and some of the theories and ideas may therefore not apply directly to the case of
municipal knowledge export. The size and level of internationalisation does however concur
between companies in previous research and the subject of this study, which means some of
the incentives and barriers may be recognised in the results. Most of all, the discussion of
incentives and barriers can be used together with the characteristics of municipal companies
(see section 2.2.3) and important aspects of knowledge export, to form a frame of reference
with which to understand and analyse the results of this study.
3.2 Important aspects of knowledge export
This section presents some important aspects of knowledge export that elucidate some of the
features influencing the reality of knowledge export from municipal companies, and will need
to be taken into consideration in the discussion of incentives and barriers. The section
discusses the characteristics of service sales, export from state-owned enterprises, possible
business models for export from municipal companies and the knowledge areas suggested for
export.
10
Characteristics of service sales 3.2.1
Services can be said to be made up of deeds, processes and performance. In a number of
essential ways, services are different to products - products are tangible, measurable, visible
and possible to physically move from a producer to a customer. Services on the other hand,
are produced and consumed simultaneously, are perishable and have low perceived value.
Every service produced is in a sense unique, especially for more complex types of services.
Even if there are reference cases to help convince customers, customisation is an inherent
feature in a service and therefore the exact result can never be identically reproduced from
case to case. (Zeithaml et al, 2008)
Service providers face different challenges than product providers when trying to achieve
export success (Dahringer and Mühlbacher, 1991). Because of the inherent characteristics of
services, they are more difficult to market and sell than products, both on domestic and
export markets. It is challenging to convince a customer to pay for a service that they cannot
inspect to determine the value of (Zeithaml, 2008), so the readiness to pay is significantly
lower for services than for products. Especially in export settings, with geographical and
cultural distances, the challenges specific to service business become important. Service
business success depends most of all on people and relations between humans (Zeithaml,
2008).
The Swedish Environmental Technology Council (Swentec) (2009b) describes how a lengthy
business process is required in order to sell system solutions within environmental
technology to foreign customers. In the early stages such as first contacts with prospect
customers or system demonstrations, the process is characterised by a low probability of
closing a deal and thus a high business risk.
In both Swedish, European and international economies, there is a system of public
tendering in all cases of sales to public entities such as national, regional or local
governments and authorities. This creates certain challenges: the sales process needs a lot of
work to get on a shortlist of qualified suppliers and then compete for the deal (Weele, 2012).
Export from state-owned enterprises 3.2.2
State-owned enterprises operate according to a different logic than entirely private
companies because of their ownership, which influences behaviour and strategies (Ferraz
Pimentel and Magalhães Feleppa, n.d.). Estrin et al (2012) saw that state-owned companies
have a lower degree of internationalisation than private ones. Some researchers also suggest
that state-owned enterprises are less efficient than private ones, because of reasons such as
political pressure and reduced market capital discipline (Ferraz Pimentel and Magalhães
Feleppa, n.d.).
While private companies will strive to create value for shareholders measured in cash flow
and revenue, state-owned enterprises have a distinctively different set of owners (political
representatives and, indirectly, the local citizens) who could have completely different
interests and measures of shareholder value (Ferraz Pimentel and Magalhães Feleppa, n.d.).
11
Therefore, state-owned companies will have a set of goals and objectives not only related to
profit, for example environmental benefits, employment and so forth (Estrin et al, 2012).
Previous examples have shown that state-owned enterprises do not necessarily fit the typical
categories of internationalisation of multinational companies (Ferraz Pimentel and
Magalhães Feleppa, n.d.). The choice of markets in the internationalisation processes can
correspond somewhat with the owner government’s interest to strengthen certain
relationships between nations. Research has also found that while the purpose of
internationalisation was to create shareholder value, the definition of shareholder value was
not clear.
In Ferraz Pimentel and Magalhães Feleppa’s (n.d.) study of a Brazilian state-owned power
company, they observed that institutional factors weighed heavily on the company’s strategic
positioning. Such institutional factors are related to rules and regulations that govern
business and impact the company’s strategies. The importance of institutional factors upon
export performance was also noted by Nobel Prize winner Douglass North, stating in an
article from 1992 that ―institutions and ideology together shape economic performance […]
institutions affect economic performance by determining (along with the technology used)
the cost of transacting and producing‖ (North, 1992). It is noted by Frankelius et al (2011)
that ―institutions can be looked upon as both success factors and barriers‖ so it seems that,
with the right requirements in place, they can provide a basis for efficient markets with for
example low transaction costs (North, 1992).
Ferraz Pimentel and Magalhães Feleppa (n.d.) saw that the company’s public ownership
created advantages, drawing benefits from country-to-country relationships such as risk
mitigation. Another suggested ownership advantage was a high degree of knowledge of the
company’s technological area.
Knowledge export approaches 3.2.3
Kanda et al (2014, forthcoming) present three main approaches used to take municipal
environmental technology knowledge on to export markets:
The subsidiary approach
Privatisation
Using development aid projects
In the subsidiary approach, the municipal company establishes a dedicated subsidiary to
focus on export, while the parent company remains focused on the core business as before.
The subsidiary uses personnel and resources from the parent company, and often also
engages external consultants in order to gain access to needed knowledge and competence.
The privatisation approach entails an entirely private company emerging from a spin-off
from the municipal company’s activities. People and competence from the origin company
may leave in a planned or unplanned fashion, and the entirely private company will be reliant
on marketing and sales, or external investors, for financial inflow. The development aid
approach will leave the municipal company organisationally unchanged, however dedicating
some of its personnel to applying for funds from development oriented organisations. Funds
12
can typically come from SIDA and the financing is conditioned with the requirement that
projects should have a wide societal impact. The funding agency’s strategic ambitions will
influence the choice of markets for such projects.
Swentec (2008) also suggests a few different models for municipal competence export. One
of these, the agreement model, is constructed as an agreement between a municipal company
and a private counterpart which has an export contract with an international customer. The
municipal company makes its knowledge available, and the private actor is responsible for
the delivery of the project. While this model is a rather low-risk alternative, and also allows
the municipal company to make money from the project, it is identified as organisationally
challenging (Swentec, 2008).
Knowledge specifically subject to export 3.2.4
Sweden has a quite unique societal model where municipalities are responsible for water,
waste and other environmental technology infrastructures. Swedish municipalities have
developed a lot of competence in how to set up and manage these systems, which can be a
predicament for foreign local governments. This potentially gives Sweden a competitive
advantage, given that the competence can be made available to those interested (Swentec,
2008; Wiqvist and Nylund, 2012). Because Swedish municipalities have had a monopolistic
role as service providers in various environmental technology sectors, they have over decades
developed and refined unique competence as tenders and system managers (Fredriksson and
Mattson, 1996). Öhrström and Sandin (2009) insist that Swedish municipal companies can
and should export services within pre-feasibility studies, strategy, tendering support and
education and training.
A study published in 1983 saw that municipal knowledge within environmental technology
had been used by consultants as well as system suppliers within construction and
manufacturing, but that municipal companies had not demanded any payment for lending
their personnel. The expertise specific to municipal companies was related to management,
operations and services as well as training and education of staff. It was reasoned that
municipal companies had, due to monopolistic control within some areas, developed unique
knowledge within operations, tendering and defining specifications for ordering plants and
systems. It was also pointed out that municipal companies have unique possession of
reference cases that are very important to private companies. (SOU 1983:72)
The dynamics between different actors in export 3.2.5
Over time more and more emphasis has been put on the importance of networks in the
business environment, as opposed to a neoclassical market environment where markets
conditions are explained in terms of supply and demand. In this new view, being stuck
outside of a relevant network can lead to greater uncertainty for a company than physical
distance would. Johanson and Vahlne (2009) state that ―markets are networks of
relationships in which firms are linked to each other in various, complex and, to a
considerable extent, invisible patterns‖. Hence, it is necessary for a company to position itself
within a relevant network in order for successful internationalisation, since it would
13
otherwise suffer from outsidership from the market (Johanson and Vahlne, 2009). The
importance of networks has also been identified in an empirical study on entrepreneurial
firms by Coviello and Munro (1995), who state that ―foreign market selection and entry
initiatives emanate from opportunities created through network contacts, rather than solely
from the strategic decisions of managers in the firm.‖
It has also been shown that business networks can contribute to the accumulation of
knowledge and building of trust, which are key factors in the internationalisation process
(Johanson and Vahlne, 2009). This requires that both parties in the relationship make a
mutual commitment. The larger the psychical distance, the harder it is to build relationships.
If a company tries to enter a foreign market without having any position in a network which
covers that market, it is very hard to be successful. Johanson and Vahlne (2009) also claim
that networks are borderless and as a result they can have a considerable impact on a
company’s choice of geographical market to enter (Johanson and Vahlne, 2009). In their
discussion regarding industry clusters, Frankelius et al (2011) put emphasis on the
importance of having a cluster leader as well as political and financial backers. They also
identify that non-adequate network contacts can be a barrier to a company’s successful
internationalisation.
3.3 Incentives for export
A company’s choices in relation to its export activities depend upon the barriers it faces, as
well as the motivations, driving forces or incentives which make export an attractive choice. A
definition of an incentive for export used by Leonidou et al (2007) is: ―all those factors
triggering the decision of the firm to initiate and develop export activities‖. Leonidou et al
(2007) saw that incentives can be both internal and external, while they can be of either
proactive or reactive nature.
Four main export incentives will be discussed in this section, as shown in Figure 2:
Figure 2: Export incentives
Incentives related to business opportunities 3.3.1
Even though Leonidou et al (2007) name a large number of factors as potential drives for
export activities in small firms, their relative importance varies and only a few are proven to
have a high impact. The factors with the highest impact are the potential for extra sales,
profits and growth from exporting, possession of a unique product and the desire to reduce
dependence and risk of the domestic market. Furthermore, it is noted that the driving force
ultimately is made up from a number of factors that vary in time, depending on the situation,
14
geographical location as well as on a firm by firm basis. However, in general the factors
showing the highest importance are either relating to financial advantages or the situation on
the domestic market (Leonidou et al, 2007).
One of the reasons state-owned enterprises start to export is to be able to expand even
though the local market is saturated or has high competition (Ferraz Pimentel and Magalhães
Feleppa, n.d.).
Estrin et al (2012) argue that the globalisation of state-owned companies is driven by each
country’s political economy, because the political economy shapes economic institutions
which in turn influence the state-owned companies’ strategies.
Unsolicited orders 3.3.2
The most contributing factor that encourages companies to start exporting experimentally is
the reception of an unsolicited export order (Leonidou et al, 2007; Bilkey and Tesar 1977).
According to Czinkota and Ronkainen (2006) more than half of all export initiation by small
firms in the U.S. comes from such unsolicited orders. An important enabler for unsolicited
orders is the growth of corporate websites which make information available more easily for
foreign customers. Another, more proactive, way to receive orders from foreign customers is
to invest money, time and effort in participating in trade fairs, however evidence shows that
trade fairs rarely serve as a major incentive for firms to export (Leonidou et al, 2007).
Management initiatives 3.3.3
A study on small and medium-sized manufacturing companies in Wisconsin, USA, by Bilkey
and Tesar (1977) showed that the probability for companies exploring export possibilities to
engage in export activities was correlated to managers’ perception of the companies’
competitive advantages and whether or not the company was making export plans.
According to Leonidou et al (2007), companies with highly committed managers who have an
international mindset are more likely to initiate export activities. Such interest can spring to
life for several reasons, among which the authors mention previous positive experience with
export, having spent time in a foreign country setting, and having gained professional
experience within multinational corporations or international organisations. The quality and
dynamism of the company’s management has been identified as the second most important
contributing factor for export initiation, second to the reception of an unsolicited export
order (Bilkey and Tesar, 1977).
The importance of managers is also reflected in the differences between companies that
initiated export activities because of customer initiatives, and those who did it on their own
accord. In Bilkey and Tesar’s (1977) study on Wisconsin companies, it was observed that
companies who initiated export on their own accord as opposed to receiving an unsolicited
order were on average much larger with respect to the number of employees, had better and
more dynamic managers, perceived fewer export barriers, and had higher expectations upon
export advantages.
15
Coviello and Martin (1999) have performed a study on the internationalisation process of
technical consultancy firms in New Zealand, which concluded that internal characteristics
and company resources, rather than external stimuli, are important incentives in an
internationalisation process. The initial decision to internationalise was proven to be largely
influenced by a firm’s network of formal and informal relationships. They also mention a
number of other influencing factors such as international experience of employees and the
firm’s desire to ensure control of service provision (Coviello and Martin, 1999).
Seeking knowledge gains 3.3.4
Access to technological and organisational knowledge has also been identified as a motivator
for internationalisation of a state-owned enterprise (Ferraz Pimentel and Magalhães Feleppa,
n.d.). Previous studies of the gains from internationalisation in state-owned enterprises
showed that the organisation perceived an advantage in the form of knowledge added to the
organisation (Ferraz Pimentel and Magalhães Feleppa, n.d.). Knowledge was added to the
organisation both because people in the company had to try new things and thereby develop
their skills, and from partners with whom the company cooperated in the international
projects.
3.4 Barriers for export
Export barriers can be defined as internal and external factors that discourage companies
from starting to export or which hinders its existing export activity (Suarez-Ortega, 2003).
They can be constraints related to attitude, structure or operational issues that deter a
company from initiating, developing or sustaining international operations (Leonidou, 1995;
Smith et al, 2006). Export barriers can therefore both discourage firms from ever starting to
export and cause problems for firms that already have export experience; the barriers can be
experienced by both exporting and non-exporting companies (Smith et al, 2006). The three
areas of export barriers to be included in the theoretical framework are shown in Figure 3:
Figure 3: Export barriers
Characteristics in the market and of the customer 3.4.1
Research done upon small and medium-sized companies in the US indicated that companies
far along the export development are likely to perceive some barriers extra strongly, such as
difficulty understanding foreign business practices, different product and consumer
standards in foreign countries, difficulty in making money in foreign markets and difficulty in
obtaining adequate representation in foreign markets (Bilkey and Tesar, 1977).
16
There is evidence from a study of Swedish environmental technology companies
(Gunnarsson et al, 2012) that knowledge about foreign markets is the dominating factor that
withholds higher levels of export. This is related to understanding customer needs, finding
distribution channels, communication issues and understanding the rules, regulations and
culture in the foreign market.
Gunnarsson et al (2012) note that there are some differences depending on within which sub-
sector of environmental technology the firm is operating. Furthermore, in their study they
show that few companies had knowledge about business clusters and potential beneficial
effects that a cluster might have, however a larger amount of firms had contacts or
cooperation with research institutions or public actors (Gunnarsson et al, 2012).
Institutional and ownership-related factors 3.4.2
Ferraz Pimentel and Magalhães Feleppa (n.d.) identified some challenges related to the
internationalisation of a state-owned enterprise such as the need to attend to both market
and non-market goals. This is related to the special circumstances that come with owners and
shareholders with not only financial interests.
In the internationalisation process of publically owned companies, discrepancies may emerge
between the executives in the company on the one hand and the political owners on the other
hand (Estrin et al, 2012; Ferraz Pimentel and Magalhães Feleppa, n.d.). The company
management may for example have a different degree of entrepreneurship and market-
orientation than the owners.
Barriers related to company resources 3.4.3
Small companies can experience export barriers such as insufficient personnel, lack of
managerial and financial resources and lower risk-tolerance (Vila-López, 2013). A study done
on Swiss enterprises by Hollenstein (2005) concluded that among small companies (5 to 49
employees), the export obstacles most commonly mentioned as important were high financial
risks, insufficient management capacity, and deficiency of financial resources.
Frankelius et al (2011) present a resource-based-view for analysing export barriers, in which
it is not the actual resource base that is in focus, but rather the way in which a company is
able to acquire, leverage and structure its resource base in order to create customer value.
This ability determines a company’s competitive advantage and ability to act on the market.
Hofer and Schultz (1999) make a clear connection to the company’s general management and
state that ―if a firm is to survive and grow over time, its general managers must have a clear
understanding of what resources are and how they can create or acquire them, and they must
also be able to deploy those resources strategically with respect to customer preferences and
competitive pressures‖. This is also supported by Bilkey and Tesar (1977) who state that
managers who are competent, dynamic and internationally orientated are more able to
overlook or overcome export barriers.
17
Company characteristics affecting the perception of different 3.4.4
barriers
The types of export barriers perceived by companies are more or less the same for companies
in different countries and industries (Suárez-Ortega, 2003), while there are differences
across industries and countries as to which ones are the most severe (Smith et al, 2006). An
example of the difference in perception of barriers was shown in a study on American and
Indian engineering companies. The managers in the American companies ranked barriers in
host government and host country infrastructure as most severe while Indian firms thought
cultural differences, home government barriers and availability of export services had the
most impact on their ability to export (Smith et al, 2006).
All kinds of export barriers are perceived more strongly for companies in early export
development stages, compared to companies with more export experience (Suarez-Ortega,
2003; Smith et al, 2006; Leonidou, 1995). Barriers that inhibit export initiation are the most
recognised among non-exporting companies whereas firms with export experience stress
problems relating to operations, procedures and markets (Smith et al, 2006). Also
Rameseshan and Soutar (1996) have noted that there is a significant difference of opinion
between exporters and non-exporters, with non-exporters experiencing barriers as much
more severe than the exporters. Of course, even at the same stage in the export development,
the nature and severity of export barriers experienced by companies can vary (Smith et al,
2006).
Generally, companies that decide to start to export have been in business for a shorter time
than companies that choose not to export (Vila-López, 2013). A suggested explanation is that
older firms are less prone to innovations such as exporting to unfamiliar markets. Small
companies have been shown to experience export barriers more strongly than larger firms
(Smith et al, 2006).
3.5 Theory synthesis
In this section, the most important findings from the theoretical framework are selected to
support the gathering and analysis of empirical data. The three main topics of the theoretical
framework to be used in the analysis are: the what and how - knowledge export content and
style, secondly: incentives - expectations and gains and lastly: barriers - challenges and
reasons to refrain.
Previous research and existing theories of what barriers and incentives there are for
companies in an export venture, the special characteristics and conditions for municipal
companies as well as the nature of services and service marketing will together make up the
main basis for analysing empirical results.
Knowledge export content and style 3.5.1
The content of knowledge export is made up of services: deeds, actions, performance. The
knowledge areas concerned with municipal energy and waste companies are those that
originate in the companies’ long term responsibility for creating and providing
18
environmental services within the waste and energy areas. Suggested by previous studies
(SOU 1983:72, Öhrström and Sandin, 2009), the municipal energy and waste companies
have specific knowledge resources within:
Tendering and defining specifications of systems
Operations and services
Training and educating personnel
Planning and design of systems
Providing reference cases
There are four important models for municipal competence export (Kanda et al 2014,
forthcoming; Swentec, 2008):
The subsidiary approach
The privatisation approach
The development aid approach
The agreement model
Incentives 3.5.2
With the theory presented by previous studies and the characteristics of services and
municipal companies, together with the characteristics of municipal companies and service
sales, there are some dominant themes among incentives that will be applicable to municipal
companies. Those themes are presented in Table 1.
Table 1: Key themes of export incentives
Seeking business
opportunities
Companies can through an export venture explore business opportunities
by looking to obtain higher profits or growth outside the domestic
market.
Unsolicited orders A typical catalyst for starting export activities is the unsolicited order
from a foreign customer. Whether a company started export activities in
a reactive or a proactive way is thought to depend upon the company’s
size, how high the expectations are on export success, and how barriers
are perceived by the decision-makers in the company.
Management
initiatives
The export ideas could also come from managers within the organisation,
whose interests and characteristics drive them to pursue export
possibilities. Managers positive towards export were known to have high
confidence in their company’s ability and they also typically have an
international mind-set.
Seeking knowledge
gains
Theories also suggest that companies start internationalisation processes
to gain knowledge resources. The added knowledge can be abilities and
skills, as well as of a more technological nature.
The special governance conditions in municipal companies imply that the municipal
companies’ strategy and behaviour will be guided by other factors than solely to generate
profit. Especially for companies owned by public entities, the owners’ motivations may be
non-financial and set by certain values or a political agenda. The main purpose of municipal
companies and the interest and responsibilities of their owners will partly decide what
incentives they have for knowledge export.
19
Barriers 3.5.3
Barriers exist both as inhibitors for ever starting export activities, and as challenges in
progress and success for existing export ventures. Some of the export barriers presented in
previous theories will be particularly applicable on the service export setting and for the
special conditions of municipal companies. The key themes in applicable barriers are
presented in Table 2.
Table 2: Key themes of export barriers
Difficulties related to
marketing services
Given the intangibleness of services, problems can arise when trying to
prove the actual value of the service, which can be even harder when
exporting due to for example cultural differences.
Characteristics in the
market and of the
customer
A lack of understanding of the characteristics in the market and the
particular customer needs on the foreign market has been identified as
a barrier in companies’ export activities.
Institutional and
ownership-related
factors
Particularly in publically owned companies, discrepancies between
financial goals of executives and non-financial goals of owners may lead
to challenges in internationalisation due to having an extra set of goals
to attain in the daily operations.
Barriers related to
company resources
There is evidence of companies experiencing lack of sufficient resources
in order to successfully engage in export, especially in smaller
companies.
Theories have suggested that small companies experience larger barriers than larger ones. It
has also been proposed that companies that are inexperienced perceive barriers more
strongly than those who are further along in their internationalisation. There is also evidence
to support the fact that the geographical setting of a company affects which barriers are
perceived as most severe.
As Leonidou (1995) points out, barriers and constraints will not on their own prohibit or
inhibit a firm’s internationalisation. Characteristics of the manager, the organization and the
surrounding environment of the company will decide what influence the constraints and
barriers actually have upon the company’s choices.
20
4 Methodology
This chapter describes the methodology chosen for the thesis project. First, the overall
phases from start to finish are described. There is also a discussion of which data collection
methods were found to be most suitable for the purpose and research questions. Finally, the
chosen methodology for analysis and presentation of results are presented and discussed.
4.1 Project phases and research design
This thesis project started with a project specification, followed by a pre-study and
methodology definition. After that followed data collection, analysis and reporting. Figure 4
shows a flow chart that illustrates the main stages of this thesis project with a brief summary
of the activities in each stage.
Figure 4: Framework for the overall methodology of the project
The process illustrated in Figure 4 is comparable to that proposed by Lekvall and Wahlbin
(2001), while modified to match this specific project. Just as they propose, the ambition of
the layout is to create congruence between conclusions and aim, analysis and research
questions, methodology and empirical data.
The beginning of the project included several meetings with the commissioning organisation.
The CEO of Cleantech Östergötland laid the foundation for the focus of this study, based on
the perception of a lack of knowledge about municipal energy and waste companies’
international activities. The aim and research questions were formulated and the project was
properly scoped. As expressed by Lekvall and Wahlbin (2001), it is important to reach an
agreement with any commissioner regarding the problem formulation, the available
background information and the aim of the project, in order to avoid the risk of different
parties having different perceptions and expectations on the project and its results. In this
case, the authors were given mandate to focus and scope the project as they saw fit, to
provide a result as useful and informative as possible for all interested stakeholders.
A pre-study was made after having decided upon the project specification, to acquaint the
authors with the subject matter and context of Swedish environmental technology export.
This was also thought to deliver further indication about the most important areas to focus
on in the data collection.
The following phase, choice of methodology, was based on the project specification and the
results of the pre-study, so that data collection could be done in a way that suits the aim and
scope and also answers the research questions. Planning the research methods also included
Project specification
• Aim
• Research questions
• Scoping
Pre-study
• Background • Literature
studies
Defining the methodology
• Choice of methods
• Planning
Data collection
• Desktop research
• Interviews
Analysis
• Analyse data • Discussion • Drawing
conclusions
Reporting
• Thesis report • Presentation of
results
21
designing the data collection activities. The data collection phase following the
methodological planning created the empirical basis for analysis and conclusions. Finally, the
results are reported in the form of a master’s thesis report and presentation.
4.2 Research approach
Methodology is a multidimensional concept that encompasses not only the techniques for
collecting and analysing data (which is the method), but also ―the logic behind the use of
particular methods commensurating with the objective in mind‖ (Sahu, 2013). One part of
this is to define what Lekvall and Wahlbin (2001) call the approach, by which they mean the
technical design of the study. The main question is to decide whether it is going to be a deep
study of a few cases, describing and analysing several cases in a uniform manner, or if the
analysis is mainly tied to a development over time. The aim of this study is to analyse
experiences of knowledge export in municipal companies. Data collection is therefore
imperative to the quality and the results of this thesis project.
Primary and secondary data 4.2.1
A literature review and contacts with industry representatives led to the conclusion that there
is not much gathered information about knowledge export experiences in municipal energy
and waste companies. It was therefore necessary to collect primary data from these
companies in order to access information and make it possible to analyse their incentives and
experiences of knowledge export.
Collecting experiences from many companies produces more useful and valid empirical data
than looking at only a few cases would, since it allows the recognition of reoccurring ideas
and themes as well as differences and variances. Taking into account the fact that the
companies are numerous and geographically spread out lead to the conclusion that it would
be practical to use secondary data in some way to distinguish interesting cases to direct the
collection of primary data towards.
Qualitative interview study 4.2.2
Information about companies’ barriers and incentives are categorised as qualitative data,
which is such data that is not suitable for measurement or expression in numerical terms
without the risk of losing critical information. Qualitative data is namely that data which
captures the nature of things and refers to meanings, descriptions, concepts and
characteristics (Berg, 2009). This study is therefore a qualitative one.
There are a number of data collection methods available, and it is relevant to reflect upon
what kind of information is relevant and suits the study (Björklund and Paulsson, 2012). The
main point of this study is to gather knowledge about municipal energy and waste companies’
knowledge export, which is mainly made up of qualitative information.
Qualitative primary data is suitably collected in personal interviews, which is the logic behind
the decision to use this data collection method.
22
4.3 Data collection techniques
Secondary data was collected in a desktop research scan aimed at finding interesting cases of
municipal energy and waste companies from which to collect primary data. Primary data was
then collected through interviews, both live and over the phone. Table 3 contains a summary
of the four main data collection activities in the study, the methods used, the number of
studied units (informants) and the output from each part of the data collection.
Table 3: Data collection activities
Method Desktop research Survey Municipal company
interviews
Additional
Interviews
Objects
studied
75 municipal energy
and waste
companies
59 municipal
energy and waste
companies with
no confirmed
knowledge export
11 municipal
companies with
confirmed knowledge
export
9 other actors in
companies,
industry
organisations etc.
Output Companies with
known international
activities
Size, ownership,
technology area,
CEO
Objects for
questionnaire,
interviews,
telephone interviews
Unknown cases of
knowledge export
Reasons for which
companies refrain
from knowledge
export
Experiences,
incentives, barriers
related to knowledge
export,
companies’ perception
of the role they play in
environmental
technology export
The role that
municipal
knowledge can
play for Swedish
environmental
technology export
The interest from
other actors in
commercialising
municipal
knowledge
Desktop research on municipal energy and waste companies 4.3.1
Before being able to select which municipal companies to interview, it was necessary to have
some sort of overview of the population of Swedish municipal energy and waste companies.
Desktop research with internet resources produced a subset of companies that could be
scanned and categorised, creating a detailed list of information about these companies.
Keeping in mind that there are 290 Swedish municipalities, it was not possible to include all
municipal companies in the scan due to the limited time available.
The criterion for the completion of this subset was judged according to coverage both in
number of municipalities and also in terms of population. With the hypothesis that larger
companies with more employees were more likely to be interesting in this study, and also that
larger municipalities were more likely to have larger companies than smaller municipalities,
the scan focused on the most populated of Sweden’s municipalities.
Since the beginning of this project several companies have been known as interesting
examples of those that have had export activities. These examples were included in relation
23
to the export collaboration by Avfall Sverige, and the scan therefore started with these
companies. Other companies were found on municipalities’ websites and lists of members of
industry organisations for waste and district heat.
The subset of 75 companies included in the scan represented just fewer than 100
municipalities, covering over half of the Swedish population. Information gathered in the
scan was found by searching on the internet, both on the companies’ websites and in other
publications, journals and industry organisations’ websites. The following information was
gathered for each company in the scan:
Company owner (municipality/municipalities)
Revenue (2012)
Number of employees (as of 2012-12-31)
Technology areas, one or both of:
o Waste
o Energy
Confirmed case of knowledge export (yes/no)
The company owner, revenue and number of employees were found using the database
Retriever Business1, which is a trusted source often used for business research purposes. The
technology areas were found on each company’s website.
For companies not already known to have had knowledge export activities, a keyword-search
was made. The search was made both with Google and, where available, the company’s own
website search function. The chosen keywords were tested on the companies that were
already known to be interesting cases, so it could be seen that these words turned up results
were the companies’ export initiatives had been mentioned somewhere.
The keywords used were:
International (internationell)
Export (export)
Aid (bistånd)
Those companies where interesting results could be found in the keyword search were also
categorised as confirmed cases of knowledge export. It is of course possible that some
companies’ engagement could not be found by using the methods described above, even if it
was found to be effective for the companies with documented cases of international
engagements. The criteria for knowledge export used in the scan were fairly generous, for two
reasons: a loosely defined criteria required less effort to confirm and it also allowed finding a
larger number of potentially interesting cases.
The scan was not exhaustive, neither concerning finding the subset of energy and waste
companies nor for knowing whether or not they have done knowledge export. It is however
not necessary to make an exhaustive scan of all municipal energy and waste companies in
Sweden in order to fulfil the aim of this study. Another potential disadvantage of the desktop
1 http://web.retriever-info.com/services/businessinfo.html
24
research method is that it is only suitable for finding basic information, since it is fairly brief
and imprecise.
The desktop research has an important advantage in that it is fairly time-efficient and
effortless. When knowing how to find information about one company it is generally a
straight-forward process to find the same information about several more.
Survey 4.3.2
There were two main reasons for the use of a survey as a complement to interviews in the
data collection. One of the reasons was to gather data to answer one of the research questions:
why municipal companies refrain from knowledge export. The other reason was to further
scan for cases of knowledge export among the companies in the desktop research scan where
no such activities had previously been confirmed.
A survey allows a repeated and standardised data collection from many companies. Since the
number of companies is fairly large, an electronic questionnaire was the most practical kind
of survey to use to collect this information. The result of the desktop research produced a
selection of companies where there were no known export activities, and the CEO of each of
those companies was invited to answer the questionnaire electronically by a link in an e-mail.
The questionnaire automatically registered answers into a spread sheet, making it easy to
gather and document the results.
The questionnaire was deliberately made brief, so that it would not require much time or
effort from the respondent. After name and title, the questionnaire asked if the company had
ever been involved in international collaboration projects. Depending on whether the answer
was yes or no, different questions followed to find out ―why not‖ or some details about the
international projects. The exact content of the questionnaire is found in Appendix 1:
Questionnaire.
Using a questionnaire makes it impossible to ask follow-up questions in order to make sure
to understand the answers correctly or obtain more information. However, gathering the
names of each respondent made it possible to contact them afterwards if necessary. Another
important weakness of using a questionnaire is the risk that respondents misunderstand the
questions, leading to invalid results. In order to test how well the questions would work, the
questionnaire was sent to one of the respondents as a test. This particular respondent was
familiar with the project and authors, and could give an important indication that the
questionnaire was sufficiently well-written.
Interviews with municipal companies 4.3.3
The interviews served to produce qualitative empirical data to be used in the analysis in the
thesis. It is essential for the aim of the study to collect information directly from decision-
makers within the companies, since there is no available documentation of their experiences
of knowledge export or their incentives. The chosen method was to use a standardised set of
questions in a semi-structured interview guide for all the municipal companies in order for
25
the results to be comparable, but at the same time give the respondents some freedom to
develop their answers without constraints.
Eight live interviews were held with municipal energy and waste companies. In addition,
three telephone interviews were made, whilst using the same interview guide. The distinction
between companies to interview live and those who were telephoned, originated from
practical reasons. The time and resources available for travelling during data collection were
limited, and the resulting choice of live interview companies allowed travelling routes to be
optimised. While the selection of live and telephone interview methods was thus rather
pragmatic, it will probably not have had any major influence on the results of the study.
Wherever possible, interviews were held with the CEO or a top-level manager since a person
in such a position best represents a company’s strategy, and is also in close contact with the
company board and owners as well as the employees on lower levels in the organisational
hierarchy. Although that kind of respondent can only produce second-hand information
regarding for example what the company’s employees think of the international projects, they
were viewed as the best choice of respondent considering the time and validity. The
interviews took approximately one hour to complete. Respondents received the interview
transcripts per e-mail in order to check facts and avoid misunderstandings.
The data from the interviews is thought to answer the research questions, so the topics
covered in interviews were chosen based on the research questions of the study, and the
themes of incentives and barriers elaborated in the theoretical framework, see section 3.5.
The interview guide covered areas such as current and previous activities, general attitude to
international engagements within the company and from the owners, expectations with the
engagements and realised gains, challenges in the engagements and also more general
questions regarding the importance of municipal companies in the Swedish environmental
technology export. For the complete interview guide used in interviews with municipal
companies, see Appendix 2: Interview guide for municipal companies.
A semi-structured interview guide has some inherent advantages and disadvantages. It is a
more time-consuming way of gathering data than for example by using a questionnaire, but
the information from an interview with a semi-structured interview guide is much richer and
more profound. The gathered information is also primary information collected directly from
the source without influence from any intermediaries. On the other hand, the information
can suffer from subjectivity from the respondent, where personal opinions may be hard to
distinguish from those that are representative of the entire company. Lastly, one clear
advantage with the method is the possibility for follow-up questions, which allows the
interviewer to get to the bottom of the questions and arguments to fully understand the
respondent.
Additional interviews with other actors 4.3.4
The other actors in this thesis are representatives from different organisations that in some
way have an interest in the municipal knowledge or Swedish export of municipal technology.
Interviews with these actors were thought to generate input to the analysis of how municipal
26
knowledge has been useful in international projects. Also, it was aimed at gathering different
views of the importance of municipal companies for Sweden’s environmental technology
export and what role it is desired that the municipal companies take, in order to later be able
to compare these views with the views from the municipal companies.
These interviews took up 30-60 minutes and followed a semi-structured interview guide with
questions of a more open kind than those for the municipal companies. This restricted the
respondents’ answers even less, which was positive and natural since there was very little
information available prior to the interviews that could have helped formed more strict
questions. The questions covered topics such as how previous collaborations had been
structured, the value and uniqueness of municipal knowledge in such projects and what role
municipal companies can take. The interview guide and a list of the respondents can be found
in Appendix 3: Additional interviews. The same advantages and disadvantages as presented
in section 4.3.3 are applicable here also.
The other actors interviewed are associated with the organisations presented in Table 4.
Some of the organisations were presented to the authors by the commissioning company as
potentially having important and interesting input to the study, and were therefore chosen
for interviews, and some were found to be interesting by the authors when conducting
desktop research.
Table 4: Presentation of other interviewed organisations
Organisation Description
Swedish Waste Management Association (Avfall Sverige)
Trade association for waste management companies in Sweden. Currently creating a resource pool in to commercialise municipal knowledge for export.
Bizcat
Private consultancy company focused on export of municipal competence within district heating. Currently running a project trying to adapt the business model to the waste sector.
International environmental technology cooperation – Government offices of Sweden (IMT)
Division within the Ministry of Foreign Affairs, focused on strengthening the environmental technology cooperation with China, India and Russia, by for example facilitating contacts between businesses and the public sector.
Business Sweden - SymbioCity
Partly owned by the government, working towards creating growth for Swedish companies abroad. SymbioCity is an initiative focused on promoting holistic and sustainable urban development.
Fjärrvärmebyrån (FVB)
Private consultancy company within district heating. Part of Bizcat’s project and suspected to have an interest in the area of municipal knowledge export.
Sweco Environment (Sweco)
Private consultancy company focused on water and waste solutions. Part of Avfall Sverige’s project and suspected to be interested in commercialising municipal knowledge.
ÅF Energy (ÅF)
Private consultancy company focused on energy and power generation. Part of Avfall Sverige’s project and suspected to be interested in commercialising municipal knowledge.
Swedish Environmental Research Institute (IVL)
Non-profit environmental research institute, partly owned by the government. Have several projects nationally and internationally within different environmental areas, such as waste handling and climate issues. Also part of Avfall Sverige’s export project.
27
Certain special cases of data collection 4.3.5
In a limited number of cases, other types of data collection techniques were used. Some of the
companies were mentioned as cooperating in all international activities with another
company within the municipality that was subject of an interview. In one case (Tekniska
Verken i Linköping) there was already a transcribed interview in place with the most relevant
information, which was made available for this thesis project. For a few other companies,
information was gathered or confirmed through personal communication either over phone
or live. Even if there of course are some problems with not gathering primary data in this
way, the information was regarded as sufficient for the purpose of this thesis.
4.4 Discussion of methodology choices
The choice of data collection methods used in the study has been discussed above, as have the
purpose and the strengths and weaknesses with each method. Table 5 is a summary of the
strengths and weaknesses of each data collection method:
Table 5: Strengths and weaknesses of data collection methods
Data collection
method Desktop research Questionnaire Interviews
Strengths Easy
Time-efficient
Repeatable
Scalable
Low effort for respondent
Automatic documentation
Directly from the
source
Follow-up questions
Weaknesses Imprecise
Not exhaustive
Risk that respondents
misunderstand questions
No follow-up questions
Subjectivity
Time-consuming
Maxwell (2009) proposes a few strategies to ensure the validity of the results from a
qualitative interview study, including: rich data, respondent validation, and triangulation.
Rich data is detailed and varied enough to provide a full and revealing picture of what is
going on (Maxwell, 2009). This entails for example documenting more details from
interviews than only the most important topics. The results from interviews are more valid if
a lot of the content is recorded, as opposed to being filtered in some way by a perception of
what is most important. In this project, the ambition to collect rich data was limited by the
time available for the time-consuming interview transcription. The sheer number of
interviews also contributed to data richness.
Respondent validation is to check the data collected with the respondent that gave the
answers (Maxwell, 2009). In this project, the respondents of each interview were given a
copy of the interview transcript and a chance to point out any misinterpretations. Their
agreement that the transcripts were correct can be taken as evidence that the results from
interviews were valid.
Triangulation is to collect the same data from several sources, people or using different
methods. It serves to reduce bias in methods or respondents (Maxwell, 2009). In this project,
28
mainly the information about the companies and their export activities can be triangulated,
by checking secondary data and documentation with what respondents have said.
4.5 Method for data processing and analysis
Interviews with municipal companies produced a data set much too rich for it to be possible
to analyse the entire lot of information within this report. Since interviews were semi-
structured, the resulting empirical data was not produced in an entirely organised matter
where important parts were automatically prominent. These circumstances favour the use of
a strategy to select and structure the collected empirical data, and keyword coding was used
to do so with the results from interviews within this study.
Labelling all parts of the interview responses with pre-defined keywords made it possible to
organise the entire material thematically. Such a thematic structure was necessary to be able
to process and compare the material to find important themes and answer the research
questions.
The keywords originate from themes in the interview guide for municipal companies (see
Appendix 2: Interview guide for municipal companies), which in turn was created to
correspond to the main research questions. The keywords are shown in Table 6.
Table 6: Keywords used to process results
Content:
Scope
Packaging
Content
Funding
Incentives:
Initiative
Gains
Results
Expectations
Attitude
Barriers:
Challenges
Refrain
Discussion
Decisions
Role:
Role
Outlook
Cooperation
The practical application of the keywords started in the actual interview; when taking notes
and later transcribing the responses, all individual parts of the text was clearly labelled with
the relevant keyword or keywords. The keyword coding was then used to bring together
material from all interviews that covered a certain theme. Thus, it was possible to compare
and synthesise the answers from several companies and find patterns and variations.
Answers were then compared and categorised, so that subgroups of similar examples within
each theme could be identified. Categorising each piece of empirical data reduced the risk of
missing important material that could have contributed to the analysis. However, in some
cases the answers were hard to categorise into one single category as they contained
information that would fit into different categories. The collected data was reviewed several
times in the creation of chapter 5 in this report, in order to prevent important information
from being overlooked.
Analysis of what is exported and how 4.5.1
Empirical results of the content and models for export in the companies consist of data from
interviews and additional documentation provided by the companies. The results were
29
compared to the content and export model proposed in section 3.5.1. Alignments and
differences between results and theory were discussed, along with some propositions for the
reasons why.
Processing results and analysis of incentives and barriers 4.5.2
Using keyword coding, as described previously, allowed for a structured processing of the
interview results concerning incentives and barriers. The process included interview results
labelled with keywords in the incentive and barriers group according to Table 6. Looking at
emerging themes and patterns among the information collected from all companies allowed a
synthesis of the material, and some reoccurring incentives and barriers could be recognised.
All resulting incentives and barriers were listed in the categories ―mentioned reasons to
participate‖, ―mentioned gains from participation‖, ―mentioned challenges in participation‖,
and ―mentioned reasons to refrain‖. A matrix was created to summarise which company had
explicitly mentioned each individual barrier and incentive. The nature of data collection and
the type of information limits the possibility to make an objective judgement of categorising
each company as ―did mention‖ or ―did not mention‖ a certain barrier or incentive. This
process did nonetheless allow a rough estimation of which barriers and incentives that were
most prominent. Even if the frequency for each barrier and incentive can be calculated, that
number is an indicator rather than an exact measurement. The processed results are
presented in a table list of incentives and barriers, grouped in main themes and showing the
frequency of companies explicitly mentioning each incentive and barrier (see Table 9, Table
10, Table 11, and Table 12).
The analysis proceeded with a thorough comparison of the themes found in the empirical
results, and the themes proposed in the theoretical framework, see sections 3.5.2 and 3.5.3.
For each research question, alignments and discrepancies between results and theory were
then discussed. Further analysis included a discussion of why results were as they were. In
Figure 5, a schematic illustration shows how sub-themes from the theoretical framework and
the empirical results are compared in the analysis.
Figure 5: How to analyse results
Analysing the importance of municipal companies in export 4.5.3
The municipal companies can have certain roles in a cluster because of their special
characteristics: trust, relationships and long-time experience of managing public
environmental services.
30
The importance of municipal energy and waste companies in export can be said to be affected
by the companies’ significance and what role they take. The importance depends upon a
number of factors: whether their knowledge is unique or readily available in private
companies, what the companies themselves view as their own purpose in the export network
and what role other network actors think the municipal companies should and can have.
Strategies and behaviour depend upon an organisation’s characteristics, seeking to create
value for shareholders, but the definition of this value can vary.
The analysis of the importance of municipal companies was made by comparing the views of
municipal companies and other actors. The comparison covered both the significance and
role of municipal companies in Swedish environmental technology export, see Figure 6.
Figure 6: Analysing significance and role of municipal companies
31
5 Results
This chapter contains a presentation of the results of the data collection made according to
the methodology described previously. The results are introduced by a summary of the
desktop research performed on 75 companies, followed by a description of previous
knowledge export cases. Results from interviews are presented thematically according to
the research questions presented in chapter 1.
5.1 Companies included in the study
A collection of 75 municipal energy and waste companies were found in an initial scan. These
companies are owned by 96 out of Sweden’s 290 municipalities, containing a population of
4,6 million citizens, according to population data from 2013-12-31 (Statistics Sweden, 2014).
The scan produced some basic information about the 75 companies: ownership, revenue
(2012), number of employees (as of 2012-12-31), and area of technology (waste, energy or
both). The scan also resulted in 24 confirmed cases of companies that have or have had
knowledge export activities. Appendix 4: Results from desktop research contains a
compilation of results from all 75 companies. Figure 7 shows an illustration of the interaction
with different subsets of the 75 companies, as well as the results from those responding to the
survey.
Figure 7: Representation of the number of companies covered by the different data collection techniques
16 cases were found to be relevant, because the companies had been involved in knowledge
export projects, and were thereby selected to be part of more detailed data collection
activities. Results from these companies are presented in this chapter. 59 companies were
invited to answer the survey and 36 of them responded to it. Responses showed that 22 had
never been involved in any international projects and 8 of the companies had taken part in
knowledge export projects similar to those confirmed in the first scan. 6 companies answered
that they have been involved in international projects, but their descriptions of the projects
32
could not be thought to be related to the cases of knowledge export considered in the scan.
Out of the 22 companies that answered that they had not been involved in any international
projects, 3 of them said to have explicitly decided not to engage in such activities.
5.2 Knowledge export projects and attempts
A brief scan of the 75 companies, survey answers, and interviews, elucidated 24 cases where
municipal energy and waste companies have offered their knowledge to customers in foreign
countries. 12 cases have been studied more thoroughly in interviews, from where information
about the companies’ export activities is presented in this section.
It was necessary to limit the number of interviewed companies, because conducting and
processing results from a large number of interviews is time-consuming. After performing
the interviews, there seemed to be a consistency in the answers between companies which
indicates that additional interviews would not necessarily have added a lot to the results to
the study.
Companies to interview were chosen with the ambition to include both energy and waste
companies, with geographic variation as well as varied knowledge export experiences.
Companies who had been prominent and well-known in knowledge export contexts and been
involved in many projects were considered to be most suited for interviews, because they
could add the most relevant material to be analysed in the study. The authors recognise that
the selection of companies could just as well have been done in some other way, but with the
aim and circumstances of the study, the 12 companies formed a suitable group of interview
objects.
The following 12 companies have been interviewed:
Borlänge Energi
Borås Energi och Miljö (referred to as BEM)
C4 Energi AB (C4)
Eskilstuna Energi och Miljö (EEM)
Gästrike Återvinnare
Kraftringen AB (Kraftringen)
Renova
Sysav
Tekniska Verken i Linköping
Umeå Energi
VafabMiljö (Vafab)
Öresundskraft AB (Öresundskraft)
In addition, interviews were held with Kompetensspridning i Umeå AB
(Kompetensspridning), a dedicated export subsidiary controlled by the city of Umeå, Umeå
Energi and UMEVA, as well as the International office of Gävle municipality. While not
directly representing municipal energy and waste companies, these two interviews still gave
information about the export strategies concerning municipal knowledge in these two
municipalities.
33
The remaining 12 companies with confirmed export activities have not been studied in-depth.
Brief summaries of the export activities that have been found in these companies are
presented in Appendix 5: Export cases not studied in depth.
In the sections below follows a description of the dominant activities within each municipal
company from the list above. The companies presented a variety of ways to export their
energy and waste knowledge. Some have started dedicated subsidiaries for export projects;
others take part in twin-city programmes with the municipality. Some cases only involved the
company and a foreign partner or customer. Sometimes, the municipal company acted as a
sub-contractor to another consultancy firm. The source of information is the interview
respondent from each company, see Appendix 4: Results from desktop research for a list of
respondents.
A summary of the most significant activities of the interviewed companies can be found in
Table 7. Given that some companies are more active than others, they may appear more
frequently than others in the table. In the text that follows, more details about the activities
are presented, as well as some of the additional cases that have been identified as less
significant.
Table 7: Summary of companies and activities
Dedicated
subsidiaries to
explore export
business
opportunities
Independent
projects run by the
municipal company
Sub-contracting to
consultants and
suchlike
Other activities
BEM Sysav Tekniska Verken Umeå Energi
Borlänge Energi EEM Gästrike Återvinnare Sysav Tekniska Verken Umeå Energi Vafab Öresundskraft
Borlänge Energi C4 EEM Kraftringen Renova Öresundskraft
Tekniska Verken Öresundskraft
Dedicated subsidiaries to explore export business opportunities 5.2.1
Waste Recovery Borås
BEM is a part of a constellation also made up of the University of Borås and SP Technical
Research Institute of Sweden (SP). They have named the initiative Waste Recovery Borås
(WRB), and market a 10-day trainee programme focused on Swedish sustainable waste
management. Via international students at the university, WRB came into contact with a city
in Indonesia where the students had identified a fruit market that produces 4 tons of fruit
waste every day, which was a big problem since there was no system in place to handle the
waste. WRB realised that it should be possible to produce biogas from the waste, and made a
plan to construct a biogas plant. BEM acted as project managers during the construction, and
34
with funding from The Swedish Agency for Economic and Regional Growth the plant was
completed in 2011.
As a result of the project, other cities in Indonesia became interested in WRB. BEM was
contacted by the city of Palu, which had major problems with an uncontrolled landfill that
produced large amounts of methane gas. After performing a pre-feasibility study, a landfill
gas project was initiated, with BEM as project managers.
Sysav’s subsidiary Sysek
Sysav has formed a dedicated subsidiary called Sysek (Sydskånes Energikonsult), in an
ambition to explore the business opportunities associated with project proposals from foreign
potential customers. Founded and owned 75 % by a previous manager within Sysav and 25 %
by Sysav itself, the company was never able to live up to the expectations. Operated mainly by
Sysav’s CEO and the co-founder, numerous attempts were made with various potential
customers in different countries. After a few years the co-founder, who was most dedicated to
export initiatives, took another job leading a company related to Sysav. The Sysek company
continues to exist, but without operations or any personnel currently employed.
Usitall, started by Tekniska Verken Linköping
Tekniska Verken decided in 2007 to start the subsidiary Usitall, which was a venture aimed
at commercialising Tekniska Verken’s knowledge within waste-to-energy solutions. The
business model was that Usitall develops waste incineration projects, and then sell the
projects before construction starts, because the municipal legislation prohibits owning assets
outside the municipality. The market of choice was Eastern Europe, and the most ambitious
efforts were made in Romania.
Tekniska Verken ceased the Usitall activities in 2012, deciding that its results had not met
expectations and the company would focus on its core businesses in order to save resources.
While the subsidiary still exists on paper, there are no plans of starting up operations again.
Kompetensspridning i Umeå
Kompetensspridning was formed in 2009, owned by the city of Umeå and run by a board
controlled by Umeå Energi, Umeva and the city administration. The initial purpose was to
profit from export opportunities and commercialise the municipality’s knowledge resources
in various ways. There have been attempts to get deals in Canada, China, Russia, and other
countries, but the results have not lived up to expectations. Management is currently working
on a new concept to incorporate the municipality’s knowledge export into an innovation hub
under the new name ―cleaner growth‖. After trying to create export business opportunities
through Kompetensspridning, the managers came to the conclusion that it was impossible.
The new direction is that the municipality will take the role of a test environment for
innovation, create a marketplace in the city and develop the Umeå science park.
The company have packaged a three-day training course named ―Sustainable Awareness‖.
Recently, one of these training courses was sold making a profit.
35
Discussions about forming a municipal subsidiary
In EEM, there have been discussions about whether or not to form a subsidiary dedicated to
creating and following up on export opportunities. During on-going organisational changes
those discussions are currently not on the agenda. In Gävle, there have been discussions of
forming a company, originating from a project between the waste handling company
(Gästrike Återvinnare) and the energy company (Gävle Energi), however due to an upcoming
project in Poland (see section 5.2.2), those discussions have been postponed.
Independent projects run by the municipal company 5.2.2
Borlänge Energi
Borlänge Energi have had several projects in different parts of the world. A project that is
currently active is in Chisinau, Moldova, where Borlänge Energi are providing knowledge
within wastewater systems, waste-to-energy-solutions and city planning.
In Santiago, Chile, and Wuhan, China, Borlänge Energi has had projects working with the
establishment of environmental technology centres, as well as providing knowledge within
waste-to-energy.
Eskilstuna Energi och Miljö: biogas plant in Mysore
EEM have been running a project in Mysore, India, where they collaborate with the Mysore
city cooperation in a waste management project. Initiated by Mysore representatives with
ambitions to upgrade the waste management strategy in their city, EEM took on the project
responsibility and arranged funding through ICLD. The beginning of the project focused on
EEM teaching the Mysore engineers and city staff how all aspects of waste management is
carried out in Eskilstuna. Collaboratively, they reached the conclusion that the project should
focus on finding a solution for biogas production and organic waste collection. A pre-
feasibility study was made and delivered in the form of the report to the Mysore City
Corporation.
Running for a much longer period than it was initially thought to, the project was started
2009 and closed in January 2013. The project manager had the intention to apply for a
continued study, which was thought to be a suitable sequel project. While ICLD was very
positive towards the project and its continuation, Sweden’s bilateral agreements with India
ended at that time, making any further SIDA funding impossible.
Gästrike Återvinnare waste school in Poland
Via a Swedish contact in Poland, Gästrike Återvinnare came in contact with a project
containing an education of 600 professionals regarding waste management, over a period of
one and a half year. Gästrike Återvinnare put together a training package and together with a
Polish company they won the tender and will begin the educations during the spring of 2014.
The training sessions will be held in Poland in connection to weekends, where
representatives from Gästrike Återvinnare, the University of Gävle and consultants will be
teaching. Gästrike Återvinnare expects that 4-5 of its employees will be engaged in the project
in different periods. The size of the contract is about 11 MSEK, which will be divided between
Gästrike Återvinnare and the Polish partner.
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Sysav waste management consultancy
Sysav and the City of Malmö has had relations with Hong Kong for several years, where the
CEO of Sysav have made repeated attempts to make a deal with the Hong Kong city
administration, while trying to convince decision makers of the value of integrated waste
handling as opposed to landfilling all solid waste. There has been a widespread resistance
towards waste incineration. All attempts have so far been futile, but they have now made
plans to visit Sysav soon, so the contacts will continue.
Sysav have also had a number of independent projects within waste management consultancy.
In Toronto they helped put up a battery collection in the 1980’s. Relations with Toronto have
gone on, and a delegation of city representatives visits Sysav annually. A pre-feasibility study
in 2004 for waste, water, and energy, involved four to five people from Sysav working during
one week. Sysav received pay for the project. The current and previous CEOs worked together
producing a waste plan for the greater city region of Dublin, in a project that was agented by
ISWA (the International Solid Waste Association).
In Namibia, the Malmö city environmental department had a project where Sysav was asked
to provide a recycling collection facility. Sysav had their costs covered. The city of Malmö also
has twin-city cooperation with a Chinese city called Tang-Ma. Within the cooperation
projects have involved infrastructure themes, which was the reason for Sysav to be involved.
Tekniska Verken i Linköping
Tekniska Verken has previously done a number of small consultancy projects, for example in
Malta and Estonia. In Malta the goal was to achieve a better biogas process, and in Estonia
Tekniska Verken tried to map the conditions for establishing a waste incineration plant.
Umeå with Petrozavodsk
The municipality of Umeå has a twin-city in Russia called Petrozavodsk, which has problems
with waste and their district heating system. Representatives from Umeå Energi have visited
the city and have made feasibility studies covering for example a transition from oil to
biofuels and sustainable waste handling and incineration. The cooperation is financed by
ICLD.
Vafab
The city of Västerås has an ICLD-funded municipal partnership with Gabarone in Botswana
since four years. The aim of the partnership is to achieve environmentally, economically, and
socially sustainable development. Vafab takes part in the partnership by working towards
making the waste handling more efficient, by building a transfer station for waste and a
recycling station.
With funding from EU, a plant for anaerobic digestion of organic waste had been constructed
in Gran Canaria, but it was never put in use, since the local actors do not know how to
operate it. Vafab is now providing help, in the form of a study on how to get the plant up and
running, which is critical to Gran Canaria as they will otherwise have to return the EU-
funding. Vafab’s involvement was initiated by the manufacturer of the plant, who contacted
Vafab since there is a similar one in Västerås and Vafab therefore knows how to operate it.
37
Öresundskraft fuel conversion in Poland
A Polish company had the task of converting a boiler, previously using pulverised coal, to
functioning with biomass instead. The company came into contact with Öresundskraft since
the have made the same conversion in a boiler in Sweden, albeit it was a significantly smaller
boiler. Öresundskraft sold their knowledge as consulting services to the Polish company.
Sub-contracting to consultants and suchlike 5.2.3
Borlänge Energi
Ronny Arnberg at Borlänge Energi is employed at 25 % at IVL, a Swedish research and
environmental consultancy company. He is used as a consultant and expert in different
projects in which he can be of assistance. Over the years, some 20 employees at Borlänge
Energi have been involved in export projects due to Ronny’s involvement, as sub-contractors
both to IVL and also the Swedish private consultancy company ÅF.
Renova
Renova were contacted by a representative from Business Sweden in South Africa with a
proposal that later led to their participation in a conference with participants from South
Africa, Botswana, Angola, and Mozambique. Renova held presentations and participated in
seminars. The funding came from Business Sweden, who paid Renova according to the time
put in.
Sub-contracting to Business Sweden
Several companies have taken part in seminars, presentations and similar projects run by
Business Sweden (previously the Swedish Trade Council), within the SymbioCity concept.
These projects usually engage the municipal company as a resource for reference cases or
examples.
Eskilstuna municipality was involved in a SymbioCity project in China, and brought in EEM
as their area of operations was relevant.
The Bizcat consultancy pool: C4, Kraftringen, Öresundskraft
Three of the interviewed companies, C4, Kraftringen and Öresundskraft, have previously
been involved in international projects together with the private consultancy firm Bizcat.
Bizcat focuses on pre-feasibility studies of district heating, and the projects have been located
in the UK and Canada. The projects were focused on development of district heating in city
environment, in the form of feasibility studies. The municipal companies contributed with
their knowledge both from Sweden with different kinds of engineering services, and in the
respective country where they could contribute with experiences from their municipality and
from Sweden.
Sysav has also signed an agreement with Bizcat to be a part of the competence pool of
municipal companies for district heat projects in North America, but after agreeing and
registering their relevant personnel they have not yet been offered to participate in any
projects.
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Other activities 5.2.4
Nordic Heat
Nordic Heat is the name of a cooperation between Öresundskraft, Tekniska Verken and
Göteborg Energi, where they are looking at different possibilities for Swedish municipal
energy companies to take part in knowledge export, mainly within district heating. The
project is in an early phase with no tangible results as of yet, but they are focusing on the
markets in the UK and Belgium where a number of meetings and visits have taken place.
Previous export network of waste management companies
The CEO of Sysav, Håkan Rylander, previously employed as the CEO of Avfall Sverige. At that
time Sysav, Vafab, and the waste companies from Göteborg and Stockholm went together and
formed a pool to be able to have more resources and make it possible to agree to export
project proposals. Even though the great amount of such proposals had been the basis for
forming the pool, no proposals were ever presented to the pool by any of the members, as was
planned. Frustrated by this, the members had a meeting and came to the conclusion that
each company receiving a request made sure to fulfil it alone, so as to not share the credit
with anyone else.
Swedish Waste network
In 2012, Avfall Sverige launched a new export initiative. A project manager has been
employed full-time to manage and develop a network consisting of a subgroup of the
association’s members. In addition, a resource pool has been set up, where members of the
export network have been asked to register relevant members of their staff as available for
lending out to export projects on a contractual basis. The idea is for companies within the
pool to collaborate – someone takes the lead and acts towards the customers and market,
while other companies lend out personnel with the right expertise for each project.
Knowledge offered in municipal export activities 5.2.5
There is a clear connection between the knowledge that municipal companies intend to
export and the background of Swedish municipalities and municipal companies with regard
to responsibilities and commitments. The competence that the municipal companies have
developed is for example within operating plants, choosing concepts and approaches for
waste handling, how to finance the operations, and how to design tariff systems. Swedish
municipal companies also have a long experience of being purchasers and tendering
processes, which is something that foreign customers in many cases need support with,
according to some of the companies in the study. In general, the content can be classified into
three different categories: consulting and advisory services, education and project
management. This has been summarised in Table 8.
39
Table 8: A summary of knowledge export content
Consulting and advisory services: Education: Project management:
Feasibility studies
Pre-feasibility studies
Tendering support
Regional collaboration
Support in operations
Public relations and
awareness
Training and
education
Study visits
Managing project
execution
Consulting and advisory services
One part of the knowledge export is usually packaged within a pre-feasibility or feasibility
study, where the municipal company tries to find a solution given the specific conditions in
the region. The end result can also be a waste plan, which is something that every
municipality in Sweden is obligated to have. The studies and plans aim at providing the
necessary foundation for future planning and implementation of waste management in the
region.
Other mentioned knowledge that municipal companies can offer in export is tendering
support, where the companies in Sweden work with tendering on a daily basis, providing
ideas about how to achieve collaboration within a region and also support in operations. The
latter is a very unique knowledge that only someone who owns plants is able to offer, which
for example private consultancies do not.
Education
Swedish municipalities have also worked with is how to raise awareness among the public
that waste is a resource, which is the same question that many foreign regions are struggling
with today, and thus Swedish municipalities can provide assistance with their experience.
As several of the interviewed companies have mentioned, education is an important part of
the knowledge export. The education usually aims at contributing to a greater understanding
the Swedish model for sustainability, and can cover several of the topics that are part of the
consulting and advisory services. These trainings and educations usually take place in
connections with a study visit, which is something that all interviewed municipal companies
offer.
Project management
One tangible way of exporting knowledge is offering project management services. These
services can be a natural extension of feasibility studies, where for example a plant is to be
built. This was the case with BEM, who acted as project managers in the projects to construct
plants in Indonesia. When the municipal company have produced the feasibility study, it is
also very well informed into the situation and can thus provide important insights during the
building process.
40
5.3 Experienced incentives
This section presents the respondents’ views on the incentives related to municipal
knowledge export. These results are thought to answer some of the research questions of the
study:
Why do municipal companies want to participate in knowledge export?
What do municipal companies gain from participating in knowledge export?
In Figure 8, the structure of the section is presented. The incentives have been categorised
into reasons to participate in knowledge export, and perceived gains from knowledge export,
which will be discussed separately below.
Figure 8: Structure of section 5.3
Why municipal companies want to participate in knowledge export 5.3.1
The interviewed companies have mentioned several different reasons for participating in
knowledge export, and many of the reasons have been mentioned by more than one company.
Looking at the answers from interviewed companies, there were three main themes in their
reasons to engage in knowledge export: organisational improvements, making an
environmental contribution, fulfilling business goals and external initiatives. The individual
reasons that appeared within each of these groups are presented in Table 9, where the
number of companies mentioning each of these reasons is also noted. The table was created
following the methodology presented in section 4.5.2.
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Table 9: Reasons to participate in knowledge export
Mentioned reasons to participate Frequency
Organisational improvements Being an attractive employer 9
Motivate staff 5
Knowledge gain 4
Environmental contribution Reducing global environmental problems 9
Business goals Strengthen city and company brand 3
Explore the profit possibilities 5
Owner directives 9
Regional growth/development 4
External initiatives Customer inquiries 10
Inquiries from other actors 8
Organisational improvements
Reasons related to improving the organisation were among the most commonly mentioned
reasons for participating in knowledge export. Companies often mentioned that the export
projects were thought to make the company seem as an attractive place to work, especially for
recent graduates and young people, who are believed to be averse towards working in the
public sector. Many touch upon the fact that Swedish municipalities are not considered to be
a particularly attractive work-place for university students, who are very important for the
municipalities in order to keep developing their business and filling positions of many
engineers who will soon retire.
Both attracting talented recruits and keeping competent employees who otherwise might
look elsewhere for new challenges, were mentioned among the expected effects of export
projects. As the CEO of Vafab expresses it, she would rather offer her employees international
work than see them switching to private consultancy firms in order to feel stimulated. Umeå
Energi also wanted their international projects to act as a motivator for the staff involved in
them. The CEO of C4 recognised a contradiction in this: while he saw international project as
a good way to motivate younger employees, he also realised that projects including pre-
feasibility studies and suchlike often revolve around management themes and required more
experienced personnel.
A third incentive related to organisational factors is expectations to learn skills and add
knowledge to the company by participating in the export projects. Employees that work in
the projects can develop their competences, believed both Umeå Energi and Borlänge Energi.
Kraftringen representatives also argued that their international collaboration projects were
thought to keep the company updated about new technologies.
Carina Färm at Vafab makes the point that many of the waste treatment plants in Sweden
were built a long time ago, and that international customers are interested in the newest
technologies available. This gives Swedish municipalities an opportunity to get knowledge
42
about new technologies, by for example cooperating with private consultants who have
experience from building new plants.
Environmental contribution
Being able to make a contribution towards improving the global environment was commonly
presented as an argument for knowledge export activities. Many have recognised that some
of the most severe environmental problems, such as global warming, are global and cannot
be hindered just by implementing the best solutions inside Sweden. Borlänge Energi argues
that since Swedish systems have been in place for a long time and are very well-developed,
the municipal companies can reduce greenhouse gas emissions far more by doing
fundamental improvements in foreign countries than by only continuing to incrementally
improve the environmental performance of their own operations.
Several companies also argue that since Sweden currently is in an advanced position within
for example waste handling and waste-to-energy due to the development over time with
regulations and municipal responsibilities, they have an obligation to contribute with their
knowledge in any and all ways possible in order to improve the environmental situation
locally in different parts of the world.
Business goals
There were several incentives related to business goals that motivate municipal companies to
do knowledge export: direct encouragement from owners, the ambition to strengthen the
company and city brand, making potential profits, and contributing to regional growth and
development by creating export opportunities for local companies.
Some companies’ owner directives demand that the companies contribute to the economic
development in the region. Many owner directives also encourage the companies to be
present in the international arena and to spread their knowledge. There were also some
examples of the international projects as a way of putting the municipality on the map from
an international perspective, in order to strengthening the brand of both the company and
the city or region.
Only Sysav, Tekniska Verken, Gästrike Återvinnare and Öresundskraft, explicitly mention
profit or growth as a motivation to start their knowledge export initiatives. Renova argued
that if the company can make a profit from knowledge export, it should. There was a
considerable variation in the companies’ views upon profit as a desirable or even legal result
of knowledge export.
Umeå Energi could not recognise knowledge export as an area with any real potential to be
profitable, but try to use it as a way to create opportunities for local businesses. Sysav and
Vafab also argue that they can bring local companies with them if they have projects abroad,
creating regional growth.
BEM mentioned that the city management of Borås expressed profit expectations in relation
to the formation of WRB, seeming to think of it as a way of making extra money besides
improving the international image of Borås and contributing to international contacts for the
43
city. BEM management however had never thought there were any substantial profits to be
made from the WRB business. Similarly, Kompetensspridning had also experienced that the
city management were excited to see profit being generated from the city’s collaboration
projects with China, whereas the project manager in Kompetensspridning had realised that
such expectations were futile.
External initiatives
A very apparent reason to participate in knowledge export is external initiatives, from the
potential customer or other actors that desire the municipal knowledge within energy or
waste. These initiatives can come both from a customer who is interested in the systems that
the municipal company operates, and from other actors who have an interest in accessing the
municipal knowledge. Commonly, a foreign delegation visits a Swedish municipality and sees
the possibility to improve the situation in their home city, and asks the municipality for help
– this is for example how EEM were approached by the Indian city of Mysore resulting in a
biogas project. All interviewed companies except C4 (who worked with Bizcat) said that
project had started because of customer requests.
There are also documented cases where both governmental organisations, such as Business
Sweden, and private companies, such as Bizcat, have contacted a municipality in order to
access specific competence and resources. Both Vafab and Öresundskraft had at isolated
times been offered projects because they had a certain facility, and contacts had been
transferred through the facility contractors.
Perceived gains from knowledge export 5.3.2
The municipal companies were asked what they had gained from the knowledge export
activities that have been realised in the companies. Answers revolved around three main
themes: knowledge gains, business effects, and motivation. The incentives within each
category and how many companies explicitly mentioned each incentive can be seen in Table
10. The frequency in this category is lower than in the previous category, which is because of
the fact that fewer companies had experienced actual gains from their international activities.
This can also be related to the questions that were asked that made it natural to rather talk
about reasons to participate than about realised gains. The table was created following the
methodology presented in section 4.5.2.
44
Table 10: Gains from participating in knowledge export
Mentioned gains from participation Frequency
Knowledge gains
Perspective upon their own reality 2
Knowledge about new technologies 2
Professional development of employees 2
Positive business effects
Monetary benefits 2
Promotion of local businesses 2
Networks and relationships 2
Increase brand-awareness 3
Motivation and satisfaction
Pride, sense of accomplishment 2
Motivated staff 2
Strengthening employer brand 3
Knowledge gains
It is quite apparent that several of the conducted international projects have so been in a
foreign country with a significant cultural distance from Sweden. From several of the
interviews it has been noted that this has led to new insights for the municipal companies in
terms of how they operate in Sweden. Linda Eliasson at BEM mentioned that experiences
from other countries regarding strategies and plans contribute with a whole new perspective
on the way things are done in Sweden, albeit not directly applicable here. Renova similarly
said that international project gave perspectives on the home operations.
Both EEM and Borlänge Energi recognise that by working with other organisations or
consultants in their international collaboration projects, the companies gain access to
knowledge about technologies that they would not encounter in their normal operations.
EEM and Kraftringen highlighted that individuals who worked in projects had learned new
skills and developed professionally through their involvement in the international projects.
Positive business effects
Most companies stated that they had not made any profits from their competence export –
both because it was difficult or nearly impossible to find customers with willingness to pay
and because funding from development aid programmes was never enough to give any
surplus. Renova, BEM and Kompetensspridning could however give examples of projects
where they had received payment: BEM and Umeå for their sustainability trainee
programmes and Renova for study visits and other projects.
Another important gain that has been mentioned by several of the companies is the positive
attention that has been given to the company, both in terms of being an attractive employer
but also as having contributed to a real positive impact on the environment. This builds the
company brand as well as the reputation for the whole municipality. Borlänge Energi and
45
Umeå Energi had heard testimonials from other private companies that had experienced
advantages and opportunities in their export markets, created because the municipal
companies have been active abroad.
The CEO of Sysav noted that the international projects result in important networks that lead
to study visits, which in turn provide experience to the company and potentially an
international platform for future projects. Kraftringen also had experienced benefits from the
network of contacts that international projects had given them. EEM, Kraftringen and Umeå
Energi recognise that they have become more well-known because of previous international
engagements.
Motivation and satisfaction
EEM and Vafab mentioned that the international projects contribute to a feeling of pride
within the company – a sense of accomplishment for having achieved a substantial
improvement of the local environment in their partner city.
A project leader within EEM explained that he had found the international collaboration
projects stimulating and motivating, and similar testimonials were shared by Borlänge
Energi’s representative who also saw that staff were motivated and inspired by the
international projects. Tekniska Verken, Borlänge Energi and EEM all believed that they have
built a more positive reputation among potential recruits by having their knowledge export
projects.
5.4 Experienced barriers
This section follows a similar structure as section 5.3, but is focused on the respondents’
views on the barriers related to municipal knowledge export. These results are thought to
answer the research questions related to barriers:
What do municipal companies perceive as challenging about knowledge export?
Why do municipal companies refrain from commercial knowledge export?
In Figure 9, the structure of this section is presented. The barriers have been categorised into
challenges with knowledge export and reasons to refrain from knowledge export, which will
be discussed separately below.
46
Figure 9: Structure of section 5.4
Challenges with knowledge export 5.4.1
By categorising the challenges in the knowledge export mentioned by the municipal
companies in the interviews, a few themes could be identified with examples of challenges
matching each theme. In Table 11, these themes and examples are presented, as well as the
number of municipal companies that mentioned each example. The table was created
following the methodology presented in section 4.5.2.
Table 11: Challenges in knowledge export
Mentioned challenges in the participation Frequency
Cooperation with customers
Cultural and political differences 9
Communication problems 2
Resources
Lack of time and personnel to work in projects 5
Market challenges
More dedicated marketing required 2
Long way from contact to project 6
Hard to find customers with willingness to pay for the services 3
Hard to find funding 3
Institution and administration
Exhaustive administration required (tendering, funding) 5
Cooperation with customers
All but three of the companies that were asked about their experiences with international
cooperation projects had to some extent experienced challenges caused by various types of
differences between themselves and the customer. These challenges could typically be due to
47
cultural and political differences, or communication problems. As an example, EEM
mentioned that their Indian partners had a much stronger hierarchy than the typical Swedish
company – engineers had to ask for permission to a much larger extent than in Sweden,
which slowed down the progress. In the same project they also experienced significant
communication issues, as several decision makers were replaced more than once during the
project, which also Vafab mentioned from their project in India. Sysav and Borlänge Energi
also mentioned some general cultural differences related to business procedures, as
challenging in international collaborations.
Both EEM and BEM realise that when helping a foreign city address issues of waste
management, there can arise a conflict with local entrepreneurs who make a living
scavenging land-fills or otherwise take advantage of waste-related environmental problems.
Such problems are unfamiliar to the Swedish companies because the municipal waste
management responsibility has always been much stronger here.
It has been mentioned by several companies that the time perspective in other parts of the
world is very different from that in Sweden. This leads to projects not running according to
the plan set by the Swedish company, which can lead to frustration and other issues arising,
for example regarding resources. There might also be political resistance towards
implementing the solutions proposed by the Swedish company, as experienced by Sysav in
Toronto where the mayor had made an electoral pledge that no waste incineration would take
place in the city, based on a widespread fear for dioxin.
Another challenge mentioned by Vafab was to get true commitments from the local Västerås
municipal politicians. They were initially very positive to the international collaboration
projects, but in the end they did not make time to participate as was asked of them. The basis
of the ICLD municipal partnership is to develop local democracy, so Vafab was required to
engage local politicians as one of the terms for financing.
Sysav pointed out how it was difficult to reach the absolute top-level decision makers in a
customer city organisation. Because Swedish municipal companies have much power over
their service areas, it is easy to believe that if they develop for instance a waste plan for a
reciprocal city planning office it will be valid as it would have been in Sweden. They have
experienced that the collaboration have not been in a high enough hierarchy level for the
delivery to really be established among the top-level decision makers. Sysav’s CEO wondered
if Malmö’s city council politicians may need to take a part in Sysav’s export, to provide a
heavier influence.
Resources
Umeå Energi had experienced that line managers within the company were negative towards
export projects, because it could mean they had to lend out personnel with certain key
competencies, which disturbed regular operations. Also Vafab mentioned that it can be
troublesome to make resources available when needed, and that the main mission always
gets a higher priority than export activities.
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The CEO of Sysav pointed out that the lack of available personnel was the main hinder
standing in the way of answering to export requests. Even though hiring more staff could
make it possible to take on more of the available export projects, there would be an
unfavourable situation with idle employees waiting for the project pipeline to fill up. The
result, the CEO predicts, would be that those employees would in the end be kept busy
elsewhere in the organisation and at the apparition of an export opportunity, there would just
as much be a lack of available personnel. Several other companies mention the same thing,
and for example Karin Lindroth at Renova puts emphasis on the fact that the activities within
the municipality always comes first for municipal companies, and in the case of having to
prioritise the international engagements will always be given lower priority.
In Gästrike Återvinnare, some resource-related issues have occurred in connection to their
project in Poland, since it is a long-term commitment that will occupy lots of resources and
thus limiting the free resources available for other potential projects.
Market challenges
Many companies recognise that it is challenging to get customers to commit to ordering a
project. Even if the customer recognises a need, and realises how the Swedish company have
valuable knowledge and could make a valuable contribution to their city, the way to a
decision and commitment is long. Sysav, EEM, Vafab, and others all describe how foreign city
representatives, especially after study visits, gladly exclaim ―we want this!‖. Afterwards it is
however a long way to go, and something often stands in the way of a deal being made.
Borlänge Energi recognised the difficulties in getting commitment from the market as
expected, and related it to the fact that environmental legislation is not enforced in other
countries as it is in Sweden. In China, for example, some pollution regulations are even
stricter than in Sweden, but controls and enforcements are much weaker. The will to invest in
less polluting systems is therefore very low.
BEM recognised that their knowledge export would never be lucrative, because the markets
with the biggest needs for the services BEM want to provide are very weak financially. Even
though the city of Borås saw it as a business venture with potential to make large profits,
BEM never had the intention of gaining business profits, only to get financing to cover the
company’s costs. They also see the problem of knowing what willingness to pay there is from
a customer in an early stage of a project, but they try to solve this issue by selling their trainee
programme in connection with study visits to see if there is any real commitment.
Both Sysav and Borlänge Energi identify a weakness in Sweden’s business culture, partly
causing the inability to develop a successful environmental export sector. Ronny Arnberg of
Borlänge Energi pointed out that Sweden’s dominant industries have traditionally been
mining and forestry-related products which require no marketing efforts to sell, and thus
there is no experience from such activities. Håkan Rylander of Sysav blames the Swedish
inability to follow up on contacts, saying Swedish businesses are quietly sitting around,
waiting for the customer to call and request a project.
49
Some companies, for example Tekniska Verken and Umeå Energi, point out that a municipal
company cannot jeopardise the tax-payers’ money in international projects, and that there
must be funding for all such activities. It is mentioned that this funding is not always easy to
find, particularly when the aim is to include private investors.
Institution and administration
Umeå Energi explained that applying for and administrating the funding from EU is
ridiculously time-consuming, to which EEM agree, saying it is valid also for other types of
funding such as ICLD and SIDA. Kompetensspridning also mentioned how much time it
takes: it could take one person one work-week to complete an application, and only one in
three would be granted. This large amount of unpaid preparatory work is one of the reasons
that the large private consultancies would stay away from the EU, World Bank or ICLD
projects, according to the project manager in Kompetensspridning. The consultants have a
high pressure to charge for all work hours and can therefore not spend much time during the
application process, not knowing if the project will happen.
Ronny Arnberg pointed out that the international tendering processes are highly demanding,
requiring extensive documentation only to have a chance to be put on the shortlist. He also
states that it is not something that employees in municipal companies have experience in
doing, as it is not the same process in Swedish tendering processes.
The CEO of Sysav makes the point that a requirement for conducting international
consultancy projects is that there is consultancy insurance in place, since the company
otherwise can become financially responsible if anything were to go wrong. Such insurances
can be very expensive, and not something that municipal companies typically have.
Reasons the companies refrain from knowledge export 5.4.2
From the interviews, a number of different reasons to refrain from knowledge export and
commercial knowledge export were mentioned. Apart from these, a number of reasons were
provided by respondents of the survey, which will also be presented below. Table 12 presents
the reasons to refrain from knowledge export, as mentioned by companies in interviews and
survey answers. The table was created following the methodology presented in section 4.5.2.
50
Table 12: Reasons to refrain from knowledge export or commercial knowledge export
Mentioned reasons to refrain Frequency
Resources
Lack of resources 3
Reorganisation and priorities 4
Questionable legitimacy
Not permitted by law 2
Not supported by owners 1
Business aspects
Overwhelming marketing activities required 2
Lack of incentives 2
Resources
In C4, there are currently no discussions about taking on any international projects. The CEO
explains that they might be positive towards such an opportunity, but that the company lacks
in human resources right now for doing so. Often, the relevant knowledge concerns
management-issues and the right personnel to put into the projects would be senior staff.
Since those most important to motivate with international work are the younger employees,
the desired result would not be achieved. Lack of resources has been mentioned by other
interviewed companies as well, for example Vafab who do not have an abundance of staff,
and in the survey the CEO of Mälarenergi referred to a lack of resources as the main reason
the company chooses not to be involved in international projects.
EEM is going through a major reorganisation, and is currently not looking for or accepting
any new export projects, waiting for a new management to be installed so that directives are
clear. Similarly, Kraftringen also referred to a major reorganisation of the company resulting
in different priorities, and the company will not take on any new knowledge export projects
within the foreseeable future.
Renova is looking for a new strategy as well. There are new directives from the owners as of
2014, which the strategic management are currently working on to turn into concrete
objectives for the company.
Questionable legitimacy
Jönköping Energi and Kraftringen both refer to the municipal legislation as a reason for not
being active in knowledge export. Kraftringen in particular mentioned that they do not want
to do anything illegal, and until a precedent exists which more clearly defines what is allowed
and not, Kraftringen will remain passive. Furthermore, Jönköping Energi also states that
their owner directives discourage them from conducting international activities.
Business aspects
In Umeå, the reason to shut down the dedicated export subsidiary was the conclusion that it
was difficult if not impossible to commercially sell their municipal environmental technology
51
knowledge without being much more active on the market. Having done only a few trips for
promotional purposes, to Canada among others, Kompetensspridning did not put in nearly
as much resources for sales and marketing as they later realised would be necessary. It would,
they think, be necessary to place personnel in the foreign market to process contacts during a
long time. Borlänge Energi reason in a similar manner, and put emphasis on the fact that as a
municipal company they neither have the resources nor the right to conduct the required
activities.
From the survey it was recognised that Jönköping Energi and Karlskoga Energi & Miljö do
not see any gain coming to the company from being active internationally, which clearly is a
lack of incentives from participating.
5.5 The importance of municipal companies in Swedish
environmental technology export
Interviews with municipal companies and other actors in the environmental technology
export context have produced a number of different proposals as to what is the best place for
municipal energy and waste companies to act, in order to promote Swedish export growth.
Results are presented along the two dimensions of the importance concept, as was elaborated
in section 4.5.3. Key findings in the results are shown in Table 13.
Table 13: The significance and role of municipal companies in export
Significance of municipal
companies
The role of municipal
companies
Municipal companies Access to facilities
Long-term experience of operations
Unique responsibilities
Credibility and trust
Acting as project lead
Sub-contracting
Promoting technology
Other actors Practical knowledge
Credibility
Reference cases
Receive study visits
Educating and training
Sub-contracting
Significance of municipal knowledge as perceived by municipal 5.5.1
companies
Many of the municipal companies were of the opinion that their knowledge within certain
areas is unique and valuable, and could make substantial contributions to Sweden’s
environmental technology export. Some believe that private consultants could strengthen
their customer offer by including municipal resources. Umeå Energi’s representative
however, guesses that municipal companies have more to gain from working with private
consultants than vice versa. Four prominent themes in how municipal companies perceive
their own importance are their access to facilities, experience of operations, unique areas of
responsibility, and ability to gain credibility and trust.
52
Access to facilities
Vafab were among those presenting the access to facilities for waste management as one
important contribution municipal companies can make. The CEO emphasizes that Vafab
alone can use live operations as a display for knowledge within waste management. She also
points out that it gives the possibility to train foreign customers on-site in live operations,
transferring knowledge efficiently.
Experience of operations
Several companies stress that municipal companies have decades of experience with running
environmental service systems successfully. The operational expertise was suggested by
Renova and EEM as a major advantage compared to private consultants who generally build
and then pass on – municipal companies have run similar systems for decades and with
profit, Öresundskraft pointed out.
It was mentioned that private consultants might not be as broad in their areas of competence
as municipal companies, but that it is difficult to say if the municipal knowledge is unique. It
is stressed by the CEO of Sysav that municipal companies in general have advantageous
knowledge, references and operational experience, and it should be used more in export than
has been done so far.
Unique responsibilities
Some companies emphasised that because of specific areas of responsibility, the municipal
companies have gained skills and experience in some areas where no other companies are
knowledgeable. For example, municipal waste management companies have had to work
with user behaviour and public awareness, cooperating with politicians, public tendering
procedures, and regional collaboration. They point out that these issues can be important
elements in export projects, even if customers vary in how much they realise that importance.
Öresundskraft also pointed out that municipal companies know how to customize systems for
specific circumstances within a city. Kraftringen representatives believe their company has
the same competence as private district heating companies but that they are driven by
different motivations, as they strive for ―commercial community benefit‖ and not only growth
and profit.
A project leader within Kompetensspridning noted that municipal companies’ expertise
within purchasing and tendering is not at all adapted, and may not even be applicable, to the
circumstances of foreign markets.
Credibility and trust
Gästrike Återvinnare and C4 were among those who believe municipal companies can be
more credible than private ones, and thereby gain more trust from customers. They allow
customers (in those cases where customers are city administrations) to cooperate with an
equal. The trust in municipal companies will be greater because they are not operating in
search of profit.
53
Gästrike Återvinnare also point out that being a public actor allows them to get access to
decision-makers which make it possible to put private partner companies in touch with
valuable contacts.
The significance of municipal knowledge to other actors 5.5.2
A number of non-municipal organisations have been interviewed in the study. The
respondents are representatives of industry organisations, government offices, and private
consultancies, see Table 14. For a more complete description of the respondents, see
Appendix 3: Additional interviews. In the interviews with these actors, a number of different
views on the significance of municipal knowledge emerged. It was possible to find some
coherence between different opinions and group them into categories. Below are the opinions
and categories presented.
Table 14: Names, organizations and titles of all other interviewed actors
Organisation Respondent Title
Swedish Waste Management Association Jenny Åström Project manager for the export network
Bizcat Arne Sandin Co-founder of district heating export consultancy Bizcat
IMT (International environmental technology cooperation – Government offices of Sweden)
Mats Denninger Monique Wannding
The Government’s High Representative Deputy Director
Business Sweden Håkan Dahlfors Project manager for SymbioCity
Fjärrvärmebyrån Tobias Seborn Consultant
Sweco Environment Jakob Fries Overseas Manager
ÅF Mikael Bernhardsson Market Area Manager – Energy & Environment
IVL (Swedish Environmental Research Institute) Östen Ekengren Executive Vice President at IVL
Practical knowledge
By several of the other actors, it has been mentioned that the input from municipal
companies is mainly contributable to their practical knowledge from everyday activities. ÅF
note that their knowledge within for example collection of waste is very limited but that the
knowledge is an important part of the international projects and that they thus need to obtain
it externally. Fjärrvärmebyrån (FVB) mention that if a district heating project was to be
specified with waste as fuel, they would need to use knowledge about that area from external
sources, for example municipal companies. Also references about tariffs and control
instruments could be of relevance. This is along the same lines as what Business Sweden
expresses, saying that municipal representatives can give details and practical examples of
having implemented certain things that a foreign customer faces to implement.
54
According to IVL, the knowledge within municipal companies is very real and up to date and
it is not possible to separate it from the municipality without losing its true significance.
Credibility
Within SymbioCity, the recipient of the information is usually a municipality or government,
and when Swedish municipal representatives talk about what they have done the foreign
recipient gets a peer-to-peer feeling which provides a sense of credibility. The municipalities
can also make a difference in creating interest for Swedish solutions. It was also mentioned
by IVL that by including municipal knowledge in projects, the customers get more convinced
that the proposed solution is in fact a good one. Furthermore, a very important part
mentioned by IVL is that the political aspect is imperative when talking about infrastructure
projects. Private companies cannot provide access to Swedish decision makers in the same
way as municipal companies can, which makes the municipal contribution valuable to private
companies.
Reference cases
An important part of the Swedish offer is to be able to show potential customers the plants in
Sweden. This is something that IMT mentioned as being unique to municipalities, since they
own and operate the plants that work as reference cases for the solutions. It is also the main
way for Swedish technology providers to show their products in action, to the extent it is
installed in Swedish plants. In the same way, IVL mentioned that municipal companies have
a unique opportunity to open doors for other Swedish companies by showing their plants and
how they work in practice. Business Sweden also noted that municipalities can provide
testimonials of how certain systems and technologies have been implemented.
The role municipal companies want to take 5.5.3
Some of the interviewed municipal companies expressed certain roles that they perceive to be
suitable for municipal companies to take in order to contribute to Sweden’s environmental
technology export. These roles could in some cases also be supported by actual projects
currently or previously conducted.
Acting as project lead
The most active role is to take the lead in the projects, and actively try to find customers for
international activities. From the interviews, the way of doing this in a municipality is to start
a subsidiary focused on export, often with private actors owning parts of the company. This is
the case in for example Borås and Linköping. Borås is a slightly special case as BEM also have
a clear partnership with private actors in all of their projects and thus lower the risk for the
municipal company. Gästrike Återvinnare is another example of a company with the leading
role in their knowledge export project in Poland.
Sub-contracting to other organisations
Some of the interviewed companies have acted as sub-consultants to private consultants, for
example Bizcat. Such a role reduces the risk for the municipal company substantially, since
the only investment is the employees’ time. This model has been mentioned as a possible way
of scaling up the knowledge export from municipal companies, since it would largely
55
facilitate the process for these companies at the same time as it is part of the private
consultancies’ daily operations.
Promoting Swedish environmental technology
Municipal companies have been said to have an important role to play when it comes to
promoting Sweden and Swedish environmental technology, for example by receiving study
visits and hosting educations. This creates the possibility for Swedish companies to exhibit
their products and solutions to foreign possible customers, which is a way of creating a
market place in the home region.
Municipal actors also have a possibility to influence decision makers in other countries, since
they can achieve a peer-to-peer relation with the foreign actors. It has been mentioned that
foreign customers are more open to create a dialogue with a municipality since it does not
have a profit goal which makes cooperation easier.
Other actors’ perception of municipal companies’ role 5.5.4
This section presents the prominent proposals from the other actors as to where they see
municipal companies most suitably involved in environmental technology export. Also the
opinions as to what municipal companies should not do are presented.
Receive study visits and educating foreign representatives
Avfall Sverige said the most suitable role that municipal companies can take is to receive
study visits and be on the lookout for potential business opportunities that they then pass on
to private companies. There seemed to be a general agreement in favour for municipal
companies hosting study visits, among most respondents.
Business Sweden state that it is hard to sell knowledge to foreign customers, as many are
more interested in paying for goods, and expect the knowledge to be delivered without cost.
One potential way of making money of the knowledge was suggested to be by selling training
programmes in connection to study visits, educating the visitors in Swedish values.
Sub-contracting
IMT saw collaboration with private consultancy firms as a suitable way of including
municipal knowledge in environmental technology export, especially compared to
municipalities starting export ventures of their own. Sweden’s High Representative in
environmental technology collaborations believe in regional agreements between municipal
companies and consultants or architects, but such collaborations will entail that suitable
human resources will be available for international projects on a regular basis.
While municipal companies were very positive towards sub-contracting for private
consultants, the interviewed consultants put forth a slightly different message. Sweco
indicated that the municipal companies’ personnel could not quite match the competence
needed in Sweco’s projects. Another factor inhibiting their cooperation with municipal
companies is the fact that Sweco’s international projects are typically funded by international
financial organs where competition is fierce, leaving very limited room for contracting any
sub-consultants.
56
ÅF have some examples of international projects where people from municipal companies
have been sub-contracted to help with specific knowledge not available in the ÅF
organisation. The respondent from ÅF said they have personal contacts with useful
individuals in a few municipal companies that they will continue to make use of. Other than
cooperating with certain individuals, the ÅF representative did not particularly see any
expansion of their collaborations with municipal companies in the future.
IVL were positive towards municipal companies exporting their knowledge, most of all
together with supplier companies but also consultancies such as IVL themselves. Being partly
state-funded, IVL recognise the difference between their and other consultants’ inclination to
apply for development aid funding – private consultants are more pressured to secure
revenue in all activities and applications for international funding require time and work
before knowing a project will be realised.
Statements against municipal export ventures
IMT argued that municipal companies are not suited to proactively sell consultancy projects
in the world, since few municipal companies would have the ability to market that type of
business venture. Along the same lines, Avfall Sverige stated municipal companies do not
have enough time available to be able to sell services proactively, and should therefore not
take a leading role. ÅF concurred that municipal companies are not large and resourceful
enough to make it in the international competition of large international consultancy firms.
IVL emphasised the problem that municipalities try to commercialise a knowledge product,
but customers in foreign markets prefer to buy concrete solutions. To market a service
without any capital is therefore seen as inappropriate.
57
6 Analysis and discussion
This chapter is aimed at explaining the results of the study with help from the theoretical
framework. The analysis was made according to the presented methods in section 4.5, and
follows the same overall structure as in chapter 5.
With the theoretical framework and the results in place, it is possible to analyse which parts
align between the two, and where there is no coherence. Going beyond the comparison, it is
also relevant to reflect upon why things are as they were found to be. The findings connected
to each research question is covered below, presented following the structure in Figure 10. At
the end of the chapter a more general discussion regarding both connections between results
related to different topics as well as the overall importance of municipal involvement in the
Swedish environmental technology export can be found.
Figure 10: Structure of the analysis
6.1 The how and what of knowledge export
In the theoretical framework, a number of different ways of exporting knowledge is presented
and also examples of what knowledge are suitable and interesting to customers. The analysis
of different approaches for export and also the content in the export follows below.
Approaches for knowledge export 6.1.1
Some of the different approaches for knowledge export proposed by previous studies (Kanda
et al, 2014, forthcoming; Swentec, 2008) could be found in the results, see section 5.2. For
example, the subsidiary approach is defined as when the parent company establishes a
subsidiary dedicated to export activities, while the parent company focuses on the core
business. The same approach has been put into action in Borås with the newly founded
company Waste Recovery Borås, which is the most recent case of the subsidiary approach
found in this study. Other companies have also used the subsidiary approach, see section
5.2.1. There are both examples of earlier initiatives with subsidiaries that are now put on
hold, and other examples where the company is currently in a phase consisting of internal
discussions regarding whether to establish a subsidiary or not. Figure 11 is thought to give an
indication as to where in the development process the different companies are, and the
58
results can almost indicate a lifecycle of subsidiaries. The development of the different
subsidiaries is estimated from the results in the data collection, and can give a simplified view
of subsidiary timeline.
Figure 11: Lifecycles of the identified dedicated subsidiaries
What Figure 11 suggests does not align with what Rameseshan and Soutar (1996) state about
non-exporting firms as experiencing barriers much more severe than exporting firms. Rather,
it suggests that the barriers’ severity is perceived to increase as the export activities increase.
However, it can still be said to align with what Smith et al (2006)’s findings that non-
exporting companies experience barriers that inhibit export initiation, whereas exporting
firms are hindered by barriers relating to operations, procedures and markets.
Even if the analysis presented in Figure 11 would require more work with detailed data in
order to be truly powerful, it does lead to questions regarding for example knowledge sharing
between municipal energy and waste companies. If several companies run into the same
issues there would exist good possibilities to avoid the same mistakes being made in order for
subsequent initiatives to be more successful. One possible forum for this knowledge sharing
could be the export network being built up by Avfall Sverige.
The work that some municipal companies are doing through twin-city collaborations or as
independent projects funded by aid organisations such as SIDA, match the description of a
project within the development aid approach (Kanda et al, 2014, forthcoming). From the
results of the study, it stands clear that this is the most commonly used approach among the
interviewed companies. This could be connected to the fact that municipalities and municipal
companies in Sweden receive many visitors who are interested in the Swedish societal model
and waste management and waste-to-energy techniques, and from the visits project can
spring to life. In a few individual cases, municipal companies have conducted export
independently in projects where the customer paid for the services. This does not perfectly
match any of the models presented in the theory; however it occurred in a very limited
2006 2007 2008 2009 2010 2011 2012 2013 2014
Gästrike Återvinnare
Eskilstuna Energi & Miljö
Waste Recovery Borås
Sysav's subsidiary Sysek
Kompetensspridning i Umeå
Usitall by Tekniska Verken
Development of dedicated subsidiaries
Discussions
Active subsidiary
Subsidiary put on hold
59
number of cases. There is no information on whether or not these projects were profitable or
if the compensation was merely enough to cover the costs.
Several companies have used an approach where they acted as sub-contractors to private
consultants, and it has clear resemblances with the agreement model as proposed by Swentec
(2008). The counterpart for the municipal companies in these cases has both been private
consultancies such as Sweco, ÅF and Bizcat, but also other organisations such as IVL and
Business Sweden. The circumstances of the collaborations differ depending on the kind of
counterpart. The private consultancies have very high requirements on sub-consultants since
they have to satisfy their customers in order for the success of their companies while other
organisations tend to be less focused on revenue and recognise other values with municipal
participation. In all of the cases with sub-contracting, the risk exposure for the municipal
company is kept at a minimum, as is also suggested by the theory.
The privatisation model (Kanda et al, 2014, forthcoming) entails a private company founded
as a spin-off from the municipal organisation. This approach was not found in the results,
which can be explained by what some respondents said about the knowledge being tied to the
operations in the municipal company, and not something that can be separated from the
company and still keep its value.
Content in knowledge export 6.1.2
The content that municipal companies view as eligible for export aligned fairly well with what
was proposed by previous studies (SOU 1983:72, Öhrström and Sandin, 2009). All proposed
competencies were more or less mentioned: tendering and system specifications, expertise in
operations and services, training, design of systems and providing reference cases (see
section 5.2.5). These competences can also be said to match at least some of the technological
areas presented by the Swedish Government (2011) as suitable for export.
Tendering and defining specifications of systems as purchaser was recognised by several
municipal companies as an area of expertise where they could make valuable contributions to
a potential export customer. However it is not clear from the results to what extent the
municipal companies have specifically offered advisory services in tendering to customers,
even if the tendering expertise can reasonably be thought to be a part of any project involving
the customer putting up a new system. It has however been mentioned that tendering
support is a service that is not easy to sell.
Training programmes were very prominent examples of specific offerings to foreign
customers, both BEM and Kompetensspridning had developed and executed courses and
Gästrike Återvinnare is in an earlier stage, just about to start a very extensive training
programme on-site in Poland. Their ideas align with previous studies identifying training and
education as suitable knowledge export areas (SOU 1983:72; Öhrström and Sandin, 2009). A
notable difference in the strategic goals of the education offerings was that BEM clearly
stated that the trainee programme was used a tool for detecting committed customers,
whereas Gästrike Återvinnare considered education a suitable way to package the knowledge
60
that they want to sell. BEM’s strategic reasoning is something that stands out from the
propositions in the theory.
Themes revolving around regional collaboration and how to organise environmental
technology services in relations to politicians, were results that do not clearly align with
suggestions from previous studies. The municipal companies also recognised that they could
contribute with knowledge within public awareness and user behaviour, which was not
clearly identified in the previously studied material. It however follows the reasoning of
Fredriksson and Mattson, (1996), saying that the unique knowledge municipal companies
have is due to their areas of responsibility.
The ability to offer reference cases and study visits was given by many of the municipal
companies as an example of how they can participate in knowledge export, making it possible
for themselves or private companies to strengthen their sales offer to customers or in other
ways transfer knowledge to customers visiting them. Both previous studies (SOU 1983:72,
Öhrström and Sandin, 2009) and the results recognised reference cases as an important
element of the municipal knowledge export.
Municipal companies often deliver pre-feasibility and feasibility studies in their competence
export projects. This aligns well with previous studies suggesting that planning and design of
systems is a suitable content in knowledge export.
6.2 Incentives for export
It was possible to see patterns and agreements among the incentives for knowledge export
among municipal companies. Grouping the results into major themes allowed processing of
the information and analysing major findings from the collected material. In the following
sections, the major themes in the results (presented in section 5.3) related to incentives are
discussed and compared to the content of the theoretical framework. The content of the
section is presented in Figure 12.
Figure 12: Structure of the analysis of incentives
61
Incentives related to organisation 6.2.1
Almost all companies stated that they expected their export projects to make them seem
more like an attractive place to work, and that that was one reason to start and continue with
international engagements. This incentive is closely related to their belief that international
projects will motivate the staff – both factors are related to advantages in the human resource
base and very important for any company’s success. Municipalities fear that they are not
generally considered to be the most exciting work-places, and it was mentioned by some
respondents that they had trouble recruiting skilled candidates from universities. One study
(Lockwood and Ansari, 1999) has shown that 19 % of young graduates rate international
work possibilities as the most important work attractiveness factor while 13 % rated the
possibility contribute to community benefit as most important.
It is reasonable to compare the CEOs that use international projects to attract and motivate
employees with Leonidou et al (2007)’s conclusions about ―highly committed managers with
an international mind-set‖. If the will to create an attractive and motivating work
environment can be thought to indicate committed and dynamic managers, the results clearly
concur with Bilkey and Tesar (1977), saying that the quality and dynamism of managers are
strong influences in export initiation.
The question of motivating staff was observed both as a reason to do export project and as a
realised gain, even though it was much more frequently mentioned as a reason or expectation.
In the way that data was collected, it was however natural that expectations or reasons to
export were dominant and caused the confirmed gains not to be as clearly mentioned. Their
desire to become a more attractive employer was very frequently mentioned as an incentive
for export, but only a few had perceived that their employer brand had been strengthened.
The idea that the company can gain access to knowledge through international projects was
mentioned as a reason to try knowledge export, and also given as an example of what
companies experienced they had gained from export. The knowledge gains correspond to
Ferraz Pimentel and Magalhães Feleppa (n.d.)’s conclusion that state-owned enterprises gain
knowledge through export. Another kind of gain mentioned by the CEO of Sysav is that they
have created important networks, which as proposed by Johanson and Vahlne (2009) can
lead to accumulation of knowledge.
Desire to make an environmental contribution 6.2.2
The desire to make a contribution towards solving environmental problems in the world was
very prominent among the companies’ reasons for knowledge export. Although this was not
recognised as one of the typical export incentives suggested in previous research, it
corresponds to Estrin et al (2012), saying that state-owned companies are driven by goals
other than profit and growth. The companies have originated from the municipal
responsibilities, so what they do in knowledge export activities can be seen as a foreign
application of the activities that are very natural and familiar to them. This familiarity with
reducing environmental impact coupled with an increased number of international contacts
through study visits and suchlike makes it reasonable for municipal companies to have a
desire to make an environmental contribution to the world by exporting their knowledge.
62
There are many ways to look at whether this incentive was realised. In some of the knowledge
export projects, the municipal companies (by themselves or as sub-contractors), delivered a
pre-feasibility study for a project that never made it far enough to be implemented. In other
examples, the municipal companies had taken the project so far as to an implementation
phase. In all cases it could be argued that awareness and knowledge was increased, even if it
is hard to measure the environmental improvements that awareness and knowledge will
entail.
One observation was that municipal companies saw it as they were contributing to their
original responsibilities by exporting, for example because their owner directives commission
them to strive towards national environmental targets. Some environmental issues are non-
local, and a subject of interest for municipal governments according to respondents. Ferraz
Pimentel and Magalhães Feleppa’s (n.d.) propose that state-owned companies start exporting
to create shareholder value, and since municipal companies are commissioned to improve
environmental performance, they can be considered to create shareholder value by reducing
green-house gas emissions in other countries where their actions have much greater impact
than in Sweden.
Business-related incentives 6.2.3
Some of the companies’ reasons for knowledge export were recognised as related to fulfilling
business goals. The possibility to make profits on export markets was only mentioned by a
few companies as a reason for knowledge export attempts, compared to Leonidou et al (2007)
saying that financial advantages is one of the most important export incentives. Leonidou et
al (2007) suggested the potential for extra sales, profit and growth were among these
financial advantages, but most companies in the study expressed that they had no ambition
to make profits. While many were careful to ensure external funding enough to cover the cost
of projects, they also expressed that it was not in their priorities to make profits. The idea of
unfavourable conditions on the domestic market as an incentive for export (Leonidou et al,
2007; Ferraz Pimentel and Magalhães Feleppa, n.d) could not be observed in the results. This
can be attributed to the fact that municipal companies act on a local and regulated market as
monopolistic service providers and they are not driven by growth.
None of the companies could claim to have made any substantial profits from their export
ventures, which is easily explained by the restrictions in funding in those cases projects were
financed by development aid. In some examples, customers paid the bill for projects and a
surplus was therefore generated, but those cases were clearly isolated and no company
claimed to have a continuous inflow of profitable projects. Nothing in the results indicates
that any municipal company has found any scalable way to make money on knowledge export,
so their motivation does not concur with Leonidou et al (2007)’s statement about financial
advantages as mentioned above.
Making themselves and their city more well-known was expressed by a few companies as an
argument for export. Raising brand awareness was not recognised as an export incentive
suggested in the theoretical framework. Nonetheless, place branding can typically be their
owner’s ambitions, corresponding to the previous finding that public owners’ motivations
63
and political agendas will influence state-owned companies’ strategies and market choices
(Ferraz Pimentel and Magalhães Feleppa, n.d.). Some of the companies had also noticed that
they became more well-known after having been involved in export projects, resulting in the
benefit of a good reputation.
The chance to create export possibilities for local businesses was an incentive for knowledge
export among the municipal companies in the study, though not suggested as a typical export
incentive in the theoretical framework. It was clearly connected to fulfilling the goals of the
municipal owners, just as Ferraz Pimentel and Magalhães Feleppa (n.d.) saw that public
ownership influence strategies. Only Borlänge Energi and Umeå mentioned having heard
testimonials about realising this positive effect, which would reasonably be difficult to
measure objectively. The idea of their export creating opportunities for other companies
rather than striving for profits of their own is fairly reasonable considering the municipal
companies’ role as service providers with societal responsibility.
Reactive approach to export 6.2.4
It was apparent in the results that the companies’ export ventures were a reaction to what
they interpret to be a market demand. Evidence for this demand seems to include visits and
requests for projects by foreign delegations and the fact that the Swedish municipal
companies have waste and district heating systems of high standards. The idea of the
unsolicited order as the most important incentive for export as described in the theoretical
framework (see for example: Bilkey and Tesar, 1977; Czinkota and Ronkainen, 2006) could
be confirmed in the results of this study.
Since municipal companies have a history of very local operations it is natural that they have
dominantly reactive export strategies. In the few cases where dedicated subsidiaries have
been formed, it was thought to make it possible to answer request that had previously been
impossible to follow up on.
Comparison between expectations and realised gains 6.2.5
Interesting to note is that incentives are often expectations that the companies have on what
favourable results knowledge export might give them. In some cases, those expectations are
also manifested as things that companies experience they have gained from their export
activities.
64
Figure 13: Comparison of incentives expressed as expectations and realised gains
Figure 13 is a conceptualisation of the themes in the incentives that were expressed either as
an expectation on export of as a realised gain. Some of the expectations were mentioned
among what the companies had gained from participating in knowledge export, while some
of the gains had not been mentioned as expectations.
Regarding the expectation ―improved employer attractiveness‖ it is natural that it was not
been mentioned as a realised gain, since it is a rather difficult factor to measure that can be
fulfilled without the company knowing it. In the case of profits, however, it should rather be
seen as a failure by the companies that no profits have been made from the knowledge
export, although it can also be viewed as a misperception on the actual potential on the
market.
The two realised gains not mentioned as expectations on the export are also interesting to
highlight. Both gaining perspective on the own reality and networks are natural consequences
of being active internationally. What is interesting is the fact that the companies could not
clearly state the positive impact from having realised these gains, but they still see them as
positive results from the export.
6.3 Barriers for export
When gathering information in the interviews and the survey certain patterns emerged,
where answers from different respondents clearly followed the same general theme. This
enabled a categorisation of mentioned challenges in the participation and also reasons to
refrain from export activities, as presented in section 5.4. In some cases the same categories
appeared both as challenges and reasons to refrain, which is also supported by the theories
on export barriers presented by Suarez-Ortega (2003) and Smith et al (2006), who state that
barriers can both discourage firms from starting to export as well as hinder existing export
activities. The structure of the analysis of barriers is presented in Figure 14.
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Figure 14: Structure of the analysis of barriers
Barriers related to company resources 6.3.1
One of these cases is relating to company resources, where some companies mentioned it as
being a challenge in the export, and other experienced it more strongly as a barrier which led
them to refrain from export activities. In the theoretical framework, it is mentioned that
company size is a factor that has been identified as influencing how strongly a barrier is
perceived to be (Smith et al, 2006). In Figure 15, the studied companies’ opinion on resources
in export is presented in relation to the companies’ sizes, which shows that the four largest
companies (in terms of number of employees) did not mention resources as something
challenging in export or as a reason to refrain from such activities. This is something that
aligns with the theory in the sense that a company with a larger number of employees can
overcome barriers related to personnel resources.
Figure 15: Representation of companies' opinion on personnel resources in export in relation to company size
There is also a slight difference in size between the companies that see resources as
something challenging and those who see it as a reason to refrain, however that difference is
not as apparent. Vafab mentioned resources as both challenging in current activities and also
as a reason to refrain from certain kinds of export. As they see it, problems can occur when
having to free resources from their main tasks when needed, but also that they right now do
not have the resources to conduct export, for example due to personnel on parental leave.
All in all, in general it can be said to stand true that the smallest companies experienced
barriers related to resources strongest, while the largest companies did not make any
mention of resources being a barrier in export. The reason that lack of resources appear as a
Sev
erit
y o
f re
sou
rce
ba
rrie
r
Company size (number of employees)
Company opinion on personnel resources in export
Not mentioned
Challenge in export
Reason to refrain
66
barrier at all for municipal companies can be derived from the fact that they are indeed a part
of a municipality and thus have to primarily fulfil their local responsibilities with the
resources that they have. The question of export from these companies has emerged over
time after receiving visitors who have shown interest, but it remains a peripheral part of their
main activities which is always given the highest priority.
Customer- and market-related barriers 6.3.2
From the results, it is very apparent that cooperation with customers is an aspect that
frequently manifests itself as a barrier when conducting export. This can be related to the
difference in culture and also communication issues, two factors which both have been
identified by Gunnarsson et al (2012) as potentially influencing export success. As they see it,
it is a lack of understanding of the situation in the foreign country that leads to the hindrance,
and what the municipal companies have expressed is that things do not work abroad as they
do Sweden which lead to frustration and time delays. Although, from the theory it can be
extracted that it is not the actual differences that affect the successfulness but rather how
prepared a company is to the differences. Thus, it can be seen as reasonable that the more
knowledge that is gained about a certain culture, the easier the projects will be to conduct
successfully. This knowledge can be gained both by preparing beforehand at home, and also
through visits and projects or by collaborating with people or organisations that possess the
right experiences.
Many municipal companies encounter foreign customers who express an interest in Swedish
environmental technology in connection with study visits. The customers express an interest
in buying a similar system as the one in Sweden, but since what municipalities can offer
consists of services and not goods it becomes difficult to obtain commitment from the
customer. This is what Zeithaml et al (2008) express when talking about service export and
the fact that it is hard to convince a customer to pay for something that cannot be inspected.
Also, many of the projects take place in developing countries with weak economies which
naturally entail a lower willingness to pay. What follows is that significant efforts are required
in order to land a project, which is what Kompetensspridning realised and concluded that it
would be too demanding for a municipal actor to perform the marketing efforts required to
reach commercially successful knowledge export.
It is also possible that the services that municipal companies are trying to offer are too
abstract and lack sufficient packaging to create interest from the customers. BEM have
created a package of educations into their trainee programme that they have managed to sell
to some customers, however with varying commercial results. The fact that it is not profitable
could however be related to what Ferraz Pimentel and Magalhães Feleppa (n.d.) say about
state-owned companies having not only financial interests, such as municipalities who also
work for the benefit of the community.
Institutional and administrative barriers 6.3.3
One finding not fully explained by the presented theoretical framework is what several
companies said about the amount of administration required when applying for international
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funding and in international tendering processes. One aspect of that problem is that the
municipal companies in fact do not have any experience and competence within these areas,
which to some extent is what Frankelius et al (2012) and Hofer and Schultz (1999) say about
having to know your resource base and how to use it with respect to for example competitive
pressure. In that sense, Kompetensspridning and Borlänge Energi have progressed further
than other municipal companies in the sense that they have realised that they are not able to
be successful in that field with their current resource base.
In Borås, the city management saw the initiative WRB as a means of generating profit to the
municipality; however BEM never recognised the same possibilities and also stated that it
was never the purpose of WRB. This difference in mind-set and expectations upon export
corresponds to what Ferraz Pimentel and Magalhães Feleppa (n.d.) and Estrin et al (2012)
have identified in their research on barriers. In Borås, it did not lead to any hindrance in the
export process, which is a clear misalignment with what could be expected from the theories.
BEM expressed that WRB was not affected by the difference in profit expectations.
6.4 The importance of municipal knowledge
One part of the interviews was focused at elucidating the companies’ and other actors’
attitude towards the importance of municipal companies in the Swedish environmental
technology export. The results in section 5.5 cover both the overall significance of municipal
companies and the knowledge therein, and also aspects on the role they can and should take.
In the two sections below, the municipal representatives’ opinions are compared to the other
actors’ opinions.
Significance of municipal knowledge 6.4.1
There is a clear conformity in what knowledge was mentioned as being significant in export
activities. It was mainly practical experiences that were mentioned as the important parts,
both by municipal companies and by other actors (see sections 5.5.1 and 5.5.2). As an
example, private consultancies have no way of gaining the practical knowledge within for
example waste-to-energy and it is therefore something unique to municipalities. The
underlying reason for this is the specific areas of responsibility for municipal companies,
where the private actors are not present. Experiences from having implemented certain
projects in Sweden and thus being able to give concrete examples regarding how it was done
can also be very interesting to a foreign customer, as mentioned by Business Sweden. It can
also provide a peer-to-peer feeling, which is soothing to the customer and gives credibility to
the proposed solution. The ability to contribute with an element of credibility was mentioned
by several municipal companies and other actors, and it is also something that is unique to
municipal companies and not linked to any specific person. This is because of the fact that
profit is not an equally important goal for municipal companies and therefore they are
perceived as being easier to cooperate with for foreign customers.
Another important factor that was mentioned by both Vafab and several of the other actors
was the municipal companies’ ability to show operating plants and the technology in them.
They are reference cases for the Swedish solutions, and one of few possibilities for Swedish
68
technology providers to show their products in action, to the extent that they are installed in
Swedish municipal plants. As mentioned by IVL, this gives the municipal companies the
ability to open doors on the export market for other Swedish companies, which in many cases
aligns well with the companies’ directives of working for regional growth and development
and should therefore be viewed as important activities for most municipal companies. The
ability to open doors can also be referred to what Johanson and Vahlne (2009) say about the
difficulty of trying to enter a market without having a position in a network that covers that
market. Municipal companies can thus by having a relationship with a foreign government be
the network that other Swedish companies need in order to be successful in their export.
By being a public actor, a municipal company can also gain access to decision makers abroad
more easily than private companies which has been recognised as an important factor in
order to be successful in export that could be used to a larger extent by private companies.
However, Sysav has experienced that they in their projects do not reach high enough in the
hierarchy to come into contact with the top-level decision makers that is required in order to
make a difference.
What was also mentioned by municipal companies was the fact that they have experience of
designing complete and customised systems covering for example the entire waste cycle from
collection, via material and energy recovery, to landfilling, matched to the specific
circumstances within a city. There is also evidence from previous projects that this is
something that foreign cities and regions need help with and where municipal companies
evidently can satisfy customers. This knowledge was however not mentioned by any of the
other actors as being unique to municipal companies, but it is not overwhelmingly far-fetched
to assume that such projects could subsequently generate opportunities for private
companies (technology providers and private consultants for example).
Different export roles for municipal companies 6.4.2
The ideas presented in the results of how municipal companies should act for the benefit of
Swedish environmental technology export varied in terms of how proactive or reactive
municipal companies should be, whether they should lead projects of be part of other actors’
projects or maybe avoid any involvement outside their home region. In an attempt to process
the results from interviews (presented in sections 5.5.3 and 5.5.4), some of the prominent
standpoints have been plotted on a scale, see Figure 16. The scale is a conceptual
simplification of the parameters that vary between different standpoints; to the far left are
the ideas revolving around municipal companies as passive, reactive, not specifically
directing their actions towards an international market. The right side is thought to represent
a more proactive, dedicated marketing role for municipalities, where they strive to create
export possibilities.
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Figure 16: Comparison of the respondents’ opinions regarding municipal companies' role
The respondents who gave outspoken indications as to what they think is most suitable or
useful for municipalities to do and not do, have been given rough positions on the scale (see
Figure 16). Generally, it could be noted that those respondents who are not part of municipal
companies tended to prefer that municipal companies take a more reactive and passive role
compared to the most export-interested municipal companies in this study.
The municipal companies in the study were chosen because of their lenience towards
knowledge export, so it is expected that a large proportion of them tend to favour an active
knowledge export strategy. More interesting is the slight difference in results collected from
municipal companies compared to representatives of other organisations. Responses
indicated that government representatives and some of the private consultants were sceptical
toward proactive and presumptuous export ventures. Government representatives have a
societal standpoint and may have their views rooted in what responsibilities have and have
not been given to municipalities. Their disbelief can be put in relation to the fact that their
organisational purposes and ambitions are different from the municipal companies’. Private
consultancy firms may consider municipal knowledge export unfair competition, because
they are in a sense approaching the environmental consultancy market with some inherently
different conditions that could seem as unfair advantages.
The idea of acting as sub-consultants to large technical consultancy firms (notably Sweco and
ÅF) appear to have prominent benefits for a municipal company: the risk and need for
resources other than consultancy time is minimised, and they still potentially gains some of
the export benefits previously discussed such as staff motivation, knowledge and skills, global
environmental improvement and more. So while municipal companies believe they can add
value to consultants’ customer offers, the representatives of ÅF and Sweco showed limited
tendencies to see any importance in the idea of partnerships with municipal companies.
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6.5 Discussion of approaches in relation to incentives and barriers
It is interesting to note some ways in which barriers, incentives and export approaches are
related. For instance, companies who are motivated to start export projects because it can
motivate their staff and counteract environmental problems will meet their ends regardless of
whether they export in their own dedicated subsidiary, independent projects or as sub-
consultants.
The companies having discussed or decided to form export-dedicated subsidiaries was not
exactly the same as those who were interested in making a profit. For those who do mention
potential profits as a reason to engage in export, it seems that the subsidiary approach is
thought to help reduce barriers related to resource allocation both of time and personnel,
because the subsidiary has a clearly defined purpose and thereby justifies initiatives and
resource use in order to fulfil those purposes. All companies that were discussing a
subsidiary or already had one mentioned that their owner directives had encouraged them to
do so. The gains they recognised were completely diverse, according to interview responses.
Sysav, Tekniska Verken and Umeå Energi (partly represented by Kompetensspridning) all
recognised the following challenges which had become apparent in the export ventures: the
long way from contacts to project deals, difficulties to find funding and a heavy
administrational burden related to funding, tendering or international law. All these barriers
were more prominent among companies who used the subsidiary approach for their export,
which can be explained by the fact that running a subsidiary requires them to be more
proactive and take leads to realise export projects.
Sub-contracting to private companies can allow municipal companies to realise their
incentives related to knowledge gains, according to comments in the interviews. It allows
them the satisfaction of counteracting environmental problems in the world, which was an
important incentive. Seeing as the private company is the lead and project owner, it is
unlikely that the municipal company receives as much recognition as they would in
independent projects. Therefore, it can be questioned whether a sub-contracting focus in
export can realise ambitions to strengthen the brand as a city, company and employer, as
much as a focus on independent projects could.
The idea of municipal companies as active only in their home region as promoters for other
companies’ export opportunities can be thought to enable municipal companies to realise
their ambitions to improve the global environment. At least in an indirect way, they can thus
by educating and instructing foreign customers raise sustainability awareness in other
countries. In the more passive home-based type of involvement, it is reasonable to assume
that municipal companies will encounter less of the previously observed challenges related to
lack of resources and cultural differences. With other actors as lead in the projects, municipal
companies would be less likely to experience administrational burdens and difficulties
related to low commitment in the market or customers. It is not certain however that this
approach will allow the same stimulation of employees or employer branding effects than the
more extrovert export approaches.
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7 General discussion
Here follows a more general discussion of the meaning of the results of the study, revolving
around the validity and generalizability of results and the significance of municipal
knowledge export for Sweden.
7.1 The validity and generalizability of the results
When conducting a study on a subset of the total number of available objects, it is interesting
to discuss whether the results from the study are applicable to the entire amount of objects.
In this case, the studied objects are a subset of all municipal energy and waste companies in
Sweden. The results show that 32 % of the studied companies are active in export. Those
companies represent just fewer than 50 % of the studied municipalities. The interesting
question is if those percentages can be extrapolated to the entire set of companies and
municipalities in Sweden? In order to answer that question it is important to note that more
than half of the companies that were found to be active were spoken of in the pre-study.
During interviews and data collection, to great extent the same companies were mentioned
by each other as being active which clearly points to the fact that there is somewhat of an
―inner circle‖ in this sector. This indicates that there is a rather defined set of companies who
are in fact active and have been so for some time, which is why the likeliness of having
completely missed a significant number of active companies that no respondent mentioned is
quite low. There is thus no apparent reason to believe that half of Sweden’s municipalities
have energy and waste companies with export activities, or that over 30 % of all municipal
energy and waste companies are active in export.
That being said, the goal of this study was never to cover the entirety of companies, nor was it
to elucidate all non-active companies and their reasons for that. Instead, the focus was on
experiences from export in active companies. This study of municipal energy and waste
companies export activities likely covers a large share of the total amount of active
companies, and thus a representative set of objects in order to draw valid conclusions. These
conclusions will be valid for all companies who are either already active or discussing the
possibilities.
Throughout this project, the focus has been more and more shifted towards waste companies
than energy companies, for several reasons. First of all, the thesis project was initiated as part
of a project with Avfall Sverige as one of the main stakeholders. It is also within the waste
sector that the main export initiatives exist currently, through the export network run by
Avfall Sverige. The energy sector is more dominated by large non-municipal energy
companies which leads to that the municipal knowledge within energy is less unique than
within waste.
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7.2 Municipal knowledge export in the larger context
Results have shown that the idea of municipal knowledge export is both debated and
established among some organisations. This study has suggested that the majority of export
ventures, at least outside the area of municipal partnerships, can be found in a limited
number of municipal companies that are remarkably active and interested in developing their
knowledge export. So far, there seem to be no evidence of municipal knowledge export as a
lucrative or scalable activity, and the exporting organisations have more than anything
gained advantages related to knowledge, motivation and brand.
The past discussions of the different roles that municipal companies can have in relation to
knowledge export, has proven that there are different views and priorities. The discussion of
what role municipal companies should have is closely related to questions of what is the most
efficient way to create growth in Sweden’s export sector. Taking a ―Sweden Inc.-perspective‖
refers to looking at a higher level and how different actors in the environmental technology
export context contribute some national-level goals and aims. The nation’s goals and aims are
only a figure of thought, but economic growth and a contribution to counteract global
environmental problems are two objectives that the Swedish government want
environmental technology export to achieve (Swedish Government, 2011).
The distance between goals and purposes in the national level, and the export activities on
the municipal operational level, can be visualised according to Figure 17. On the national
―Sweden Inc.-level‖, there are some goals and purposes related to GDP growth,
environmental improvements and perhaps international relations such as bilateral
agreements. The municipal company strategic level is where municipal knowledge export
originates. The incentives that existed for municipal companies were, according to the results
of this study, mainly tied to an operational level: motivating staff, attracting talents, learning,
initiatives from visitors and so forth. The results of this study indicate that strategic decision-
makers in the municipal companies are influenced both by incentives from the national level
and the operational level, but perhaps dominantly on the operational level. One of the
important incentives was to contribute to reducing environmental impact in the world, which
is not as operational in its nature, but more related to making a contribution in broader
perspective.
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Figure 17: Driving forces for export on national and municipal level
The results of this study cannot be said to recognise municipal knowledge export as a way to
directly increase economic growth in Sweden; the majority of projects were financed by state
funds through for instance SIDA or Business Sweden and therefore those projects are only a
way of using tax-payers money to fund development in other countries, and not revenue-
generating activities for Sweden. In few cases, direct payment was transferred from a foreign
economy to Sweden. Some arguments point towards the municipal international activities as
indirectly enabling future possibilities on the export market for Swedish technology suppliers
and consultants, by spreading their knowledge and teaching foreign cities what they should
invest in. Over time, this can be thought to generate more mature customers, with a higher
tendency to commit to investments. The only way this would benefit Swedish businesses in
particular is if they manage to create a notably good image of Swedish environmental
technology competence. In reality, there is nothing to say that other nations’ companies could
not answer to the increased demand just as well as the Swedish ones can. There were
mentions of some Swedish companies having reached some level of export success after a
municipal company’s project, but in no more than a few isolated examples.
The fact that the dominant incentives for export among decision-makers in municipal energy
and waste companies revolve around creating a more motivating and attractive work
environment and contributing to solving environmental problems in the world does not add
to the notion that municipal knowledge export can contribute to economic growth in Sweden.
The municipal export companies will in general be able to fulfil their own goals without
generating net revenue. This together with the fact that export is a quite peripheral part of the
companies’ purpose and activities (export subsidiaries as an exception) indicate that
municipal knowledge export is not a straight-forward way to increase export revenue in
Sweden. The situation is different if the environmental improvement aims are considered:
municipal knowledge can contribute to development aid projects and are perhaps, as
suggested in the collected responses, even more inclined to do so than private companies
because they are much less profit-oriented.
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All that being said, it is imperative to reflect upon what the purpose of the municipal
knowledge export is, prior to investing time and money into making it successful. As has been
mentioned, there can be several possible purposes, for example generating revenue for
Sweden, contributing to the reduction of environmental impact and making municipal
companies seem like attractive employers. While it could be possible to fulfil more than one
of these purposes at the same time, it is important to know how to focus the investments in
order to achieve success.
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8 Conclusions
This chapter is aimed at presenting the conclusions from the study and it will also provide
explicit answers to the research questions presented in section 1.3. With all previous
sections in place, it is also possible to reflect upon what further research is needed within
this sector.
8.1 Conclusions of the study
After having processed all empirical data together with the theoretical framework it is
possible to draw conclusions that respond to the research questions for the study.
The knowledge offered and the models used 8.1.1
The knowledge that municipal energy and waste companies offer for export originates from
experiences from their daily operations and the municipal responsibilities. Through study
visits and contacts with foreign representatives, the municipal companies have an
understanding for which topics are perceived as interesting. Starting with the customer’s aim
and interest, the content of the knowledge export is specified collaboratively. Examples of
this knowledge is how to operate and manage plants, how to create a sustainable system for
waste handling in an urban environment, how to design a district heating system but also
related to tendering processes as well as public awareness and citizen participation.
Most export projects are run by the municipal companies within a development aid program,
and only in a few individual cases did a customer finance the project. The projects were often
initiated within twin-city collaborations, or by requests from study visits. In other cases the
municipal company take a less prominent role where some other company or organisation
act as project lead, which is a way for municipal companies to reduce their risk-taking by
simply partaking with their employees’ time. There are also cases of municipal companies
creating dedicated export subsidiaries in an attempt to make the export a profitable business.
None of the dedicated subsidiaries in the study had any positive financial results, and were
typically put on hold after 4-5 years.
Reasons to participate in knowledge export 8.1.2
The most common reason for municipal companies to start engaging in international
activities is by external initiatives such as visitors expressing an interest in their services, or
owners instructing them to do so. Being publically owned and also affected by the national
political agenda, the companies have clear societal goals to attend to, such as reducing
environmental impact, which is an underlying reason for the companies’ interest in
international projects.
Employer attractiveness and staff motivation are important reasons for municipal companies
to engage in international projects. Their point of view is that many talented candidates are
interested in possibilities to work abroad, and by having international projects they can
76
appear to be a more attractive employer. There was some but little occurrence of municipal
companies hoping to make a profit from their export ventures.
Realised gains from knowledge export 8.1.3
By working in a foreign setting, municipal companies gain a new perspective on their own
operations and on how things work in their region. The international engagements can also
motivate the employees involved in the projects. Another gain is knowledge within new areas,
both regarding new technologies, other skills, and professionalism.
Perceived challenges in knowledge export 8.1.4
Municipal companies that have been involved in knowledge export projects recognise
cultural challenges which originate from differences in work procedures, attitudes and
societal systems. They are also challenged by the lack of resources they are able to dedicate
for export projects. This has to do with the characteristics and circumstances of municipal
companies, as well as the administrative efforts needed to ensure development aid funding.
Companies that have been interested in actively pursuing export opportunities have been
challenged by the long way from initial contacts to creating customer commitment. Apart
from development aid funds, the market appears to have limited readiness to pay for
municipal knowledge within energy and waste.
Reasons to refrain from commercial knowledge export 8.1.5
The results of the study suggest that municipal companies that actively choose not to engage
in knowledge export do so because they lack in available resources, the strategic focus is
elsewhere as export is not a part of normal operations. These barriers are attributable to
some inherent characteristics of municipal companies, concerning their societal
responsibility and regulations.
It stands clear that all companies do not recognise enough incentives for commercial
knowledge export, for it to be desirable to them. A common perception is that export on
commercial grounds would entail considerable financial risk, which is prohibited by current
municipal legislation. The marketing efforts necessary to run a commercial export venture
appear to be too strenuous for a municipal company to support it. For most companies in this
study, however, the idea of commercial export had never been up for discussion.
The importance of municipal companies for the success of Swedish 8.1.6
environmental technology export
There is limited consensus of how important municipal companies are, for environmental
technology export. Municipal companies are encouraged to support environmental
technology export by providing access to reference cases for technology suppliers and private
consultants. Municipal companies can in some cases gain more trust and credibility from
foreign customers than private companies can, because they are public actors not solely out
to make profit. There seems to be a potential for municipal companies to contribute to
making markets and customers more mature, by educating decision-makers and raising
awareness within sustainability and environmental issues.
77
It is in several ways advantageous for municipal companies to act as sub-consultants to
private companies in international projects. The results of the study can however not be said
to support the idea that municipal companies add substantial value to private consultants’
customer offer.
8.2 Further research
Throughout the process of completing this thesis project, it has become apparent that the
topic of environmental technology export is varied and contains many highly interesting
questions that could be subject to further research. While this project has been limited to the
time available for a thesis, the authors have recognised several areas that should be studied
further.
There seems to be limited knowledge about the market for Swedish environmental
technology export. While ambitious efforts are made towards promoting business
development and innovations in the sector, the size and characteristics of the market is
unknown. This problem became relevant in the study of municipal knowledge export and the
different belief in sub-consultancy, as Monique Wannding (IMT) put it: ―if there would
actually be such a ferocious demand for municipal energy and waste knowledge, the business
models for exporting it would already have fallen in place naturally, driven by that demand‖.
Further research should suitably look at what demand there is for Swedish environmental
technology – who wants to buy it, what they want to buy and what markets are most
favourable to address.
While the Swedish environmental technology sector is dominated by small and medium-sized
companies, testimonial evidence points towards a demand in the market for huge project
commitments such as turnkey waste incineration plants with district heat distribution. There
is no way for existing environmental technology actors to deliver what is wanted. Further
research could investigate if there are larger Swedish companies with capacity to take on
massive projects, and how it would comply with their corporate goals and strategies.
It has been suggested that the corporate strategies of large Swedish consultancies, notably
Sweco and ÅF, are different from those of for example French consultancy firm Veolia.
Interesting research could be made on how these companies differ in their foreign operations
related to environmental technology development, and how that in turn contributes to
national export income.
Academic research could potentially make a contribution towards coupling capacity to deliver
what customers want (by studying the market) and providing knowledge to the market and
make customers see the benefit of sustainable solutions. If future research were to show what
economic benefits there are for cities in developing countries to install comprehensive waste-
management systems, this is likely to increase the willingness to pay for (Swedish)
consultants who can design such systems.
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9.2 Interviews
Arnberg, R. (2014-02-24) Borlänge Energi. (Interviewed by Kairento, K. and Nygårds, M.)
Bernhardsson, M. (2014-02-14) ÅF. (Interviewed by Kairento, K. and Nygårds, M.)
Carlsson, J. (2014-02-26) Umeå Energi. (Interviewed by Kairento, K. and Nygårds, M.)
Carlsson, P. Eliasson, L. Seger, F. (2014-02-18) Borås Energi och Miljö. (Interviewed by
Kairento, K. and Nygårds, M.)
Dahlfors, H. (2014-02-20) Business Sweden. (Interviewed by Kairento, K. and Nygårds, M.)
Denninger, M. and Wannding, M. (2013-12-16) Regeringskansliet Internationella
Miljötekniksamordning. (Interviewed by Kairento, K. and Nygårds, M.)
Ekengren, Ö. (2014-02-28) Svenska miljöinstitutet / Stockholm Cleantech. (Interviewed by
Kairento, K. and Nygårds, M.)
Fries, J. (2014-03-02) Sweco International. (Interviewed by Kairento, K. and Nygårds, M.)
Färm, C. (2014-02-13) Vafab Miljö. (Interviewed by Kairento, K. and Nygårds, M.)
Jacobsson, S. (2012-06-07) Tekniska Verken i Linköping. (Interviewed by: Kanda W. and
Sadri, S.)
Jakobsson, M. and Gustavsson, M. (2014-02-13) Eskilstuna Energi och Miljö. (Interviewed
by Kairento, K. and Nygårds, M.)
82
Lindroth, K. (2014-02-18) Renova. (Interviewed by Kairento, K. and Nygårds, M.)
Lundkvist, A. (2014-02-25) Internationella enheten på Gävle Kommun. (Interviewed by
Kairento, K. and Nygårds, M.)
Michel, S. and Möller, A. (2014-02-19) Kraftringen. (Interviewed by Kairento, K. and
Nygårds, M.)
Nylund, T. and Hallberg, P-O. (2014-03-03) Gästrike Återvinnare. (Interviewed by Kairento,
K. and Nygårds, M.)
Persson, L-I. (2014-03-03) Öresundskraft. (Interviewed by Kairento, K. and Nygårds, M.)
Rylander, H. (2014-02-19) Sysav. (Interviewed by Kairento, K. and Nygårds, M.)
Sandin, A. (2013-12-17) Bizcat. (Interviewed by Kairento, K. and Nygårds, M.)
Seborn, T. (2013-12-19) Fjärrvärmebyrån. (Interviewed by Kairento, K. and Nygårds, M.)
Söderström, R. (2014-02-26) Kompetensspridning i Umeå. (Interviewed by Kairento, K. and
Nygårds, M.)
Thessén, G. (2014-03-03) C4 Energi. (Interviewed by Kairento, K. and Nygårds, M.)
Åström, J. (2014-01-09) Avfall Sverige. (Interviewed by Kairento, K. and Nygårds, M.)
83
10 Appendices
Appendix 1: Questionnaire
This is the content of the questionnaire sent out to municipal companies.
Vad heter du?
Vilket bolag företräder du?
Vilken är din position inom bolaget?
Har ditt bolag någonsin varit engagerat i internationella projekt?
Är de internationella projekten pågående, planerade eller avslutade?
Samarbetar / samarbetade ert bolag med någon annan svensk organisation i projektet
/ projekten?
Om ja, vilken eller vilka?
Vem är eller var er utländska samarbetspartner eller kund?
Var snäll och beskriv kortfattat innehållet i projektet eller projekten:
Har bolaget någonsin berört frågan om engagemang i internationella projekt?
Varför har bolaget valt att avstå från engagemang i internationella projekt?
Appendix 2: Interview guide for municipal companies
These are the questions used as an interview guide in all interviews with municipal
companies, both live and by telephone.
1. Kortfattat, vilka projekt är det ni har gjort där ni bidragit med kompetens från er verksamhet?
a. När var det?
b. Vilket land? Typ av kund?
c. Samarbete eller egen satsning?
d. Vad levererade ni?
e. Omfattning? (personal, tid, budget)
2. Varifrån kom idén till projektet?
a. Varför var ert bolag aktuellt för projektet?
b. Hade ni flera projekt att välja mellan och hur valde ni isåfall?
3. Vad var inställningen inom bolaget till idén från början?
a. Hos VD?
b. Hos personalen?
c. Hos ägarna?
4. Var det någon i eller kring bolaget som var negativ till det?
a. Vem?
b. Varför?
i. Fanns det något i bolagets ägardirektiv som talade för eller emot
internationella engagemang?
ii. Var det någon aspekt av bolagets affärsstrategier som talade för eller emot
internationella engagemang?
iii. Fördes någon diskussion relaterat till kommunallagen eller därtill hörande
lagstiftning?
5. Vilka argument fördes fram för att motivera att ni engagerade er i projektet?
6. Vilka förväntningar fanns på projektet i förväg?
7. Vilket underlag behövde ni för att ta beslutet?
a. Risk assessment?
84
b. Kostnadskalkyl?
c. Bedömning av lediga personalresurser?
8. Har ni fått förfrågningar om andra projekt som ni tackat nej till?
a. Varför?
b. Hade ni kunnat tänka er att tacka ja under andra omständigheter?
9. Vilken kunskap/kompetens bidrog bolaget med?
a. Hur levererades den?
10. Vilka andra organisationer samarbetade ni med, eller hade nytta av i samband med det
internationella engagemanget?
a. På vilket sätt samarbetade ni?
b. Vilken nytta hade ni av dem?
c. (om samarbete med privat konsult) Vilka krav ställdes på er personal som användes i
projektet?
d. (om samarbete med privat konsult) Vilka krav ställde ni på konsulten?
11. Vem betalade för projektet?
12. Stötte ni på några problem under projektets gång?
a. Vilka?
b. Hur allvarligt var det?
c. Hur hanterade ni det?
13. Vad var den största skillnaden mellan er verksamhet och mottagaren/kundens verksamhet?
14. Klarade ni av att uppfylla era åtaganden i projektet?
15. På vilket sätt var projektet givande för bolaget?
16. Fick ni betalt för er insats?
a. Av vem?
b. Hur bestämdes ersättningsnivåerna?
17. Vad tyckte personalen om att vara med i projektet?
a. Vad tyckte de från början - ändrade de inställning?
b. Vill de göra det igen?
18. Har er organisation fått någon ny kunskap genom projektet?
19. Har bolaget/kommunen fått uppmärksamhet för de internationella aktiviteterna?
20. Har ni planer på att genomföra fler projekt?
a. Vilken typ (affärsmässigt vs SIDA)?
b. Hur ska ni hitta kunder/mottagare?
21. Skulle ni kunna genomföra liknande projekt på affärsmässiga grunder?
a. Vad talar för det?
b. Vad talar emot det?
22. Vad skulle du säga till en VD för ett liknande bolag, som funderar på att starta upp ett liknande
projekt?
23. Tror du att ett privat konsultbolag hade kunnat leverera samma kompetens som ni gjorde i det
här projektet?
24. Tror du att kommunala bolag har en viktig roll att spela för Sveriges miljöteknikexport?
a. Vilken roll ska kommunala bolag ta?
25. Är det något du skulle vilja lägga till eller utveckla, av det vi har hunnit prata om?
85
Appendix 3: Additional interviews
Here is a table of the respondents in this interview category:
Respondent Organisation Type of respondent
Jenny Åström Swedish Waste Management Association
Industry organisation
Arne Sandin Bizcat Private consultancy company
Mats Denninger, Monique Wannding
IMT Swedish Government’s Office for international environmental technology affairs
Håkan Dahlfors Business Sweden Responsible for SymbioCity concept
Tobias Seborn Fjärrvärmebyrån Consultancy firm within district heating
Jakob Fries Sweco Environment Private company of engineering consultants
Mikael Bernhardsson ÅF Private company of engineering consultants
Östen Ekengren IVL / Stockholm Cleantech Platform for environmental technology companies that are interested in export
The interview guide used in these interviews was adapted for each respondent and their
specific organisation and area of operations. The areas covered in all interviews were defined
by the list of questions:
1) Har ni någon tidigare erfarenhet av internationella projekt där kommunal kompetens har varit er
behjälplig?
a) Vilket värde tillförde kommunala kunnandet i det fallet?
2) Hur var samarbetet strukturerat?
a) Vilken typ av avtal hade ni?
3) På vilket sätt kan kommunal kompetens tillföra värde i internationella projekt?
4) Finns det någon kunskap eller kompetens i svenska kommunala bolag som inte finns någon
annanstans?
a) Är det bara inom kommuner kompetensen kan finnas?
5) Finns det något som de utländska kunderna vill ha, som bara kommunala bolag kan erbjuda?
6) Hur viktig tror du att kompetens som finns i kommunala bolag är för det svenska
miljöteknikerbjudandet?
a) Har ni någon erfarenhet som tyder på det?
86
Appendix 4: Results from desktop research
As of 2012/12 Technology area
Respondent
Company
Owner
(municipality) Revenue
Number of
employees Waste Energy Interaction Name Title
Knowledge
export
Alingsås Energi Nät AB Alingsås 266 099 44
x Survey Jan Olofzon CEO Yes
Arvidsjaurs Energi AB Arvidsjaur 30 201 6
x Survey Heikki Kairento CEO Yes
Borlänge Energi Borlänge 768 389 201 x x Interview Ronny Arnberg
Head of International
Projects Yes
Borås Energi o miljö Borås 945 736 222 x x Interview
Per Carlsson
Linda Eliasson
Fredrik Seger
Head of Department -
Strategic Development
Business Developer -
Waste Strategies
Communicator Yes
C4 Energi AB Kristianstad 424 293 81
x Interview Göran Thessén CEO Yes
ENA Energi Enköping 190 767 33
x Other Thomas Ulväng CEO Yes
Eskilstuna Energi och miljö Eskilstuna 1 309 894 413 x x Interview
Magnus Jacobsson
Mattias Gustafsson
Acting Business Area
Manager - Recycling
Project Manager & Process
Engineer Yes
Falkenberg Energi AB Falkenberg 211 699 32
x Survey Jens Melin Environmental Manager Yes
Falu Energi & Vatten Falun 621 641 168 x x Other
Yes
Gästrike återvinnare Gävle 165 459 91 x
Interview Tomas Nylund CEO Yes
Gävle Energi Gävle 1 086 199 192
x Other
Yes
Karlshamns Energi AB Karlshamn 212 745 37
x Survey Bo Johansson Business Developer Yes
Kraftringen AB Lund 2 819 809 421
x Interview
Sylvia Michel
Anders Möller
CEO
Business Area Manager -
Business and Product
Development Yes
KSRR
Kalmar
Mörbylånga
Nybro
Torsås 140 142 79 x
Survey Jan Fors CEO Yes
NSR Helsingborg
4
339 170 x
Survey Kim Olsson CEO Yes
Renova Göteborg 1 283 203 933 x
Interview Karin Lindrot
Head of Strategic
Development Yes
SYSAV
Burlöv
Kävlinge
Lomma
Lund
Malmö
Simrishamn
Sjöbo
Skurup
Staffanstorp
Svedala
Tomelilla
Trelleborg
Vellinge
Ystad 796 467 285 x
Interview Håkan Rylander CEO Yes
Tekniska Verken i Kiruna Kiruna 342 357 170 x x Survey Jan Fjordell CEO Yes
Tekniska Verken i Linköping Linköping 5 433 000 969 x x Other Stellan Jacobsson Marketing Director Yes
UMEVA Umeå 304 401 112 x
Other
Yes
Umeå Energi Umeå 1 525 693 303 x x Interview Jörgen Carlsson Business Developer Yes
Vafabmiljö
Arboga
Fagersta
Hallstahammar
Kungsör
Köping
Norberg
Sala
Skinnskatteberg
Surahammar
Västerås
Heby
Enköping 412 078 197 x x Interview Carina Färm CEO Yes
Västerviks Miljö och Energi Västervik 329 475 136 x x Survey
Per Allerth
Sofia Ahl
CEO
Head of Operation -
Household Waste Yes
Öresundskraft AB Helsingborg 3 043 018 395
x Interview Lars-Inge Persson
Business Area Manager -
Power and Heat Yes
AB PiteEnergi Piteå 470 352 74
x Survey Daniel Fåhraeus CEO No
Affärsverken Karlskrona AB Karlskrona 839 801 201 x x Survey Åke Svensson
Business Area Manager -
Power and Heat No
Arboga Energi AB Arboga 71 186 9
x Survey Björn Norberg CEO No
Bollnäs Energi Bollnäs 153 262 29
x Survey Mikael Strandberg CEO No
Degerfors Energi AB Degerfors 60 267 13
x Survey Peter Lilja CEO No
Eksjö Energi Eksjö 188 415 51 x x Survey Mårten Hermansson CEO No
Emmaboda Energi och Miljö AB Emmaboda 65 847 9 x x Survey Stefan Lundgren CEO No
Finspångs Tekniskaverk Finspång 167 006 44 x x Survey Ulf Axelsson Waste Manager No
Gällivare energi Gällivare 132 687 25
x Survey Theresa Savonen CEO No
Habo Energi AB Habo 1 218 24
x Survey Bengt Fransson CEO No
Halmstad Energi och Miljö Halmstad 930 171 249 x x Survey Monica Karlsson CEO No
Hedemora Energi AB Hedemora 186 322 46 x x Survey Sven-Erik Svahn CEO No
Herrljunga Elektriska AB Herrljunga 78 241 37
x Survey Anders Mannikoff CEO No
Jokkmokks Värmeverk AB Jokkmokk 27 682 5
x Survey Claes Markusson CEO No
Jämtlands Värme AB Strömsund 37 799 7
x Survey Richard Persson CEO No
Jönköping Energi Jönköping 978 632 145
x Survey Fridolf Eskilsson CEO No
Karlskoga Energi & Miljö Karlskoga 434 379 156 x x Survey Leif Lundell Marketing Director No
Karlstad Energi Karlstad 93 163 161 x x Survey Mats Preger CEO No
Kungälv Energi AB Kungälv 239 004 63
x Survey
Hans Larsson-
Ljungblad CEO No
Lerum Energi AB Lerum 138 054 29
x Survey Mats Jakobsson CEO No
Lidköpings Värmeverk AB Lidköping 231 004 52
x Survey Peter Johansson CEO No
Ljungby Energi Ljungby 169 388 37
x Survey Bo Schönbeck CEO No
Malungs Elverk AB Malung-Sälen 122 761 40
x Survey Daniel Henriksson CFO No
Mälarenergi Västerås 2 875 161 595
x Survey Kenneth Jönsson CEO No
87
As of 2012/12 Technology area
Respondent
Company
Owner
(municipality) Revenue
Number of
employees Waste Energy Interaction Name Title
Knowledge
export
Nässjö Affärsverk AB Nässjö 309 678 108 x x Survey Greger Phalén CEO No
Söderenergi
Södertälje
Huddinge
Botkyrka 1 405 552 134
x Survey Leif Bodinson Business Strategist No
Telge Nät Södertälje 5 917 435 786 x x Survey Anna Dufberg CEO No
Uddevalla Energi Uddevalla 437 455 129 x x Survey Lars Johansson Business Area Manager No
Alvesta Energi AB Alvesta 128 758 21
x
Unresponded
survey
Bodens Energi Boden 367 973 74
x
Unresponded
survey
Fjärrvärme i Osby AB Osby 29 064 2
x
Unresponded
survey
Göteborg Energi Göteborg 7 217 000 1 173
x
Unresponded
survey Lotta Brändström CEO
Götene Vatten & Värme AB Götene 66 613 22 x x
Unresponded
survey
Hjo Energi AB Hjo 84 976 21
x
Unresponded
survey
Härnösand Energi & Miljö AB Härnösand 29 385 129 x x
Unresponded
survey
Hässleholm Miljö Hässleholm 270 384 69 x x
Unresponded
survey Gunilla Holmberg CEO
Jämtkraft Östersund 3 605 672 348
x
Unresponded
survey
Karlsborgs Energi AB Karlsborg 4 318 22
x
Unresponded
survey
Kils Energi Kil 43 913 12
x
Unresponded
survey
Kristianstad renhållning Kristianstad 122 363 69 x
Unresponded
survey Johan Karlsvärd CEO
Kristinehamns Energi AB Kristinehamn 5 805 6
x
Unresponded
survey
Laxå Värme AB Laxå 20 245 3
x
Unresponded
survey
Linde Energi AB Lindesberg 196 506 37
x
Unresponded
survey
Ljusdal Energi AB Ljusdal 63 678 8
x
Unresponded
survey
Luleå Energi AB Luleå 1 057 785 137
x
Unresponded
survey
Nodava
Mora
Orsa
Älvdalen 46 336 72 x
Unresponded
survey Göran Svensson CEO
Skellefteå Kraft Skellefteå 4 725 436 634
x
Unresponded
survey
Skövde Värmeverk Skövde 226 052 27 x x
Unresponded
survey Carl-Johan Andersson CEO
Sundsvall Energi Sundsvall 605 739 141
x
Unresponded
survey Anders Jonsson CEO
Trollhättan Energi Trollhättan 416 554 108
x
Unresponded
survey
Växjö Energi AB Växjö 730 298 169
x
Unresponded
survey Ann-Mari Ståhlberg CEO
88
Appendix 5: Export cases not studied in depth
Company Activities Source
ENA Energi
Have conducted consulting services in China in 2006
Held in 2006 an education for Chinese visitors
Receive study visits related to energy crops
Energimagasinet, No 6, 2006
Thomas Ulväng (Personal
communication ) 2014-02-21
Alingsås Energi Nät AB
Have participated in an EU-project (REBECEE) focused on renewable energy
Have received study visits and held workshops and educations
Survey
www.rebecee.de [2014-03-06]
Arvidsjaurs Energi AB Helping twin-city in Africa with waste handling and recycling, funded by SIDA Survey
Falkenberg Energi AB
Have participated in an EU-project focused on energy efficiency and use of
renewable energy Survey
Karlshamns Energi AB
Have participated in an IEA-project focused on the next generation of district
heating networks Survey
KSRR
Helping twin-city in Africa with waste handling and management and
purification of water, funded by SIDA Survey
NSR
Exchanging experiences and competence with a city in Indonesia, funded by
SIDA Survey
Tekniska Verken i Kiruna
Have been a sub-contractor to Bizcat in a project regarding district heating in
a city in Canada Survey
Västerviks Miljö och Energi Have helped a region in South Africa with waste management Survey
Gävle Energi
Are part of a project within SKL International helping cities in Serbia with
energy and waste issues, funded by SIDA
Receive study visits
Annika Lundquist (Personal
communication) 2014-02-25
www.gavle.se [2014-03-06]
Falu Energi & Vatten
Have a cooperation with a city in Namibia, helping them with waste issues,
funded by SIDA through ICLD
Receive study visits
Melviana Hedén (Personal
communication ) 2014-02-24
UMEVA
Helping twin-city in China develop sustainable environmental systems within
waste, water and energy, funded by SIDA
Royne Söderström (Personal
communication) 2014-02-26
www.umeva.se [2014-03-06]